The relevant reasoning [of how this makes sense in terms of alternative to privacy and regarding GDPR compliance]:
The option for people to purchase a subscription for no ads balances the requirements of European regulators while giving users choice and allowing Meta to continue serving all people in the EU, EEA and Switzerland. In its ruling, the CJEU expressly recognised that a subscription model, like the one we are announcing, is a valid form of consent for an ads funded service.
I would have loved this option like 10 years ago – when it wasn't clear what a toxic company facebook is.
One question though: if I take the paid subscription, will meta keep harvesting my data and selling it to third parties? An ad-free Facebook is different from a tracking-free Facebook
Actual answer over circle-jerk speculation: To be legal in EU, they must offer one option without required (=forced) consent to tracking. When you pay, you can actually opt-out from any measure that require consent under GDPR.
All European publishers do this. They don't want your money and probably don't care much about the tiny minority that actually pays for freedom from tracking. This option exist to create the illusion of choice.
There is nothing on this cold, moist rock that will stop companies from harvesting and selling your data other than the inevitable embrace of death.
Maybe if they hadn’t already harvest my data for decades. Now that it’s no longer as profitable they want me to pay to just avoid being nagged?