I think the separate profiles is the better looking tinfoil hat. For everyday browsing Adblock is nice, but I think it falls short. Throw NoScript and RequestPolicy into the mix and it gets a lot better. My friends always laugh when they watch me browse the web because I have to enable javascript for any new site and then use RP to allow that site to make requests to other domains.
I also use that approach, and while it sometimes gets annoying I am really glad for choosing it when I, once again, stumble upon some page that would like to load crap from 20 other domains.
