Right now the big question is web 3.0 and advertising content will the actual currency be used as the medium to deliver this?
Yes.
how does that tech work?
Xnodes get paid to serve content to websites, users who access their files, etc.
and how will the revenue from this services be generated?
Traditional websites (and pretty much all normal clients/customers) will pay for hosting (of, say, ads...) via a traditional website. Xnodes get a cut; XC Inc. gets a cut.
can that be inherently linked into the currency itself that increases its demand?
Yes, massively so, because all payments to nodes will be in XC.
OR will it what XC Inc will use to fund projects, and pay out dividends?
It's a case of "and" rather than "or".