Yes. That's a genuine screenshot of how bad they can be. Sometimes, the banners can be even bigger than that one.
Fun fact: The majority of people who come here are Autistic. No, really - it's true.
Many Autistic people have sensory issues, and having a large banner that flashes in and out of existence, moves around the page and changes size depending on how far the user is zoned in could potentially be a huge issue. Just like the audio ads were a big issue years ago, I feel that these are just as bad, and I'm sure most people will agree with me here.
I use an ad-blocking DNS server, so it doesn't affect me, but for many iOS users, the experience of browsing WP is an awful one. One person has already considered leaving the site because of this. It is not reasonable to expect anyone to tolerate large, flashing banners in the middle of their screen while browsing the site.
This would be a serious problem on any site, but even more so on a site frequented by people likely to have sensory issues. Something needs to be done about this as soon as possible.