I use a physical sim. I’m not sure it even supports eSIM, but I’d be hesitant to ditch the physical sim for precisely the reasons you mentioned. I’ve swapped sims around between phones and even borrowed them from people when I was in a new area, something that’s much harder with eSIMs.
I already donate to my Mastodon instance, if my instance needs or wants money for any reason, they should set up a donation button and I’ll subscribe. Which will give them a lot more money than they would ever make from showing me ads. We should normalize removing all ads from the internet, forever.