Sounds like trouble for Newpipe, Sponsorblock, etc…
It’s actually cheaper to stream videos without ads, less traffic less diskspace ;)
It just got pushed too far. Like Google search itself. Most people are fine with a short ad once in a while, while paying with their invaluable personal data, but they push it too far and make it unwatchable, like Google search itself became garbage because of all the Google pushed SEO bs.