To be fair, the only reason why YouTube got so big and stayed relevant is THANKS to the ads. Do you think there would be incentives for creators to create good content if there wasn't as revenue?
But not everyone does right? I feel like you have to be a fairly big/popular channel to have sponsors. I'm pretty sure smaller channels can only depend on ad revenue.
It got big when there were no ads and nobody got paid. People made stuff for shits and giggles, and Google had infinite budget to just fund things. Then everything started to change a decade or so ago and now we've got this Like&Subscribe corponet situation everywhere.
You're right, they took the incentive away over and over again and drove my favorite creators out. Now that the value is lower and the uncertainty is high - now they're charging a lot more for the product.
This! So much this! On top of that, the amount of video YouTube processes is insanely expensive. We are talking billions of views of streaming video served instantly.