Does anyone feel like ad servers like CM360 are archaic? Do any agencies or major brands make the conscious choice NOT to use an ad server?

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Asking not in a snarky way - have you ever trafficked a campaign? Adservers have a lot of purposes beyond solely serving and managing creatives.

I’ve seen very small brands get by without one but once you get to a certain scale and have enough partners it almost becomes a necessity.

100% and trafficking is misery. We’re just finding clients unwilling to understand why they’re paying for the service (AND the labor of trafficking) when they don’t feel floodlights have more credibility than Analytics (and they NEVER match).
Is the primary argument that they’re a billing monitor? Ensuring vendors deliver what they say? Is there another way to monitor vendors???

Helpful in terms of what you’re hearing. There’s benefits to all sides, but I’d keep the benefits framed towards the advertisers POV (they don’t care if it makes an agency’s job harder) -

Independent monitor - are you getting what you’re paying for? I wouldn’t trust a pub-side delivery report ever
Creative delivery - possible to do things like DCO at scale with an asserted
Attribution - less deterministic with the death of the cookie, but the closest you can get to a single view of exposures across touch points

It’s probably going to be difficult to map quantitative benefits to the cost, so I’d frame it more as a question, “do you care if you’re getting what you’re paying for?” and the like

Also, floodlight and analytics will never match. Education on digital attribution should help show why you can’t rely on last click (then you’ll overindex to last click)

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