Works for most basic ads. Unfortunately basic ads are a thing of the 90's. Does not work for most common ads nowadays, as youtube et. al. run them from the same domain as other important parts for the app/site to run. For these you have to use a different approach, like running an extension in the browser to block them.
With Pi-hole you can disable an adblocker when something doesn't work and still enjoy a fast web.
But Pi-Hole still blocks the majority of ads, so it is possible to use it exclusively if you just want to make the web usable again.
It's also great at home for family members who just want to surf faster and more private and secure but don't mind a couple of ads here and there. Especially when it comes to mobile Apps.
I also want to highlight that most domains that are blocked are usually tracking services which makes Apps and Websites incredibly slow and increase traffic to a large extent. I think blocking those "services" is the true beauty of Pi-Hole. Ad-Tech is only the tip of the iceberg when it comes to commercialised tracking.
I'm amazed that something that (to me) as simple as an ad and analytics proxy running on the website domain isn't more of a thing yet. That will already circumvent a lot of ad blockers. Well initially anyway, the ones based on blocklists / patterns will probably be updated quickly.