I'm fine with this approach as long as it goes both ways. The media organisation's server is theirs, and if they want to put up a paywall or block clients with ad blockers, that's their prerogative.
At no point does ublock force their server to perform work it wouldn't otherwise. “Blocking clients with ad blockers” isn't a thing, there is only “send information plus instructions for the client to block itself”, and “only send information to logged in users” (and if they're incapable of choosing trustworthy users, that is not my problem).
I didn't say anything about the server doing extra work? And server-side ad insertion definitely exists, but if you want to get pedantic about the delivery mechanism, that's fine, websites have the right to bundle their content with ads and code that makes their ads more difficult to block.