Re: I can smell something... smells a lot like bullshit
The issue with Terms and Services is where they are not well defined. 'No ad-blockers' seems simple enough, yes, but that introduces issues:
Are the ads appropriate? Youtube has been feeding ads to children's accounts, including ads for gambling, alcohol, expensive holidays and more. They haven't addressed this even when it was reported to them and questioned. Worse is YT are profiting by doing this so they don't have an incentive to stop. Instead it falls to parents to take action to protect their children (and I include pre-teen - the case from the above was 6 and the parent was very annoyed
Are the ads legal? If I had a penny for every advert for something that isn't legal in the uk, I'd have... a couple of quid. But the point is I've seen ads on youtube for products that aren't legal here.
Are the ads for scams? Yup! Seen those, too. not as bad as with Facebook, but they're there.
Are the ads excessive and/or intrusive? Hell yes! A string of ads that took more time to play than the video I was trying to watch = way too many.
Are the ads invasive? Well, not on Youtube, but then I block pop-up windows via the browser so perhaps they do try that trick and I just don't see it.
Answer: Well, one point is to simply not use Youtube. That's what I decided when their measures affected me, and I wasn't using an ad-blocker (script blocker, yes, and anti-malware and YT seemed to get those mixed up with ad-blockers. Or I was blocking their ad-blocker code). However, that doesn't help if what you need to watch is hosted on youtube (business vids, H&S, training - they get hosted on YT because... reasons). When they get hit by ads... or are blocked... (also note the above points about abusive ads and why this can be a problem).
OR rebel: Use tools to limit, control or remove ads in a protest to YT to get them to take a more responsible and reasonable approach to their Ad greed. I know it's how they make their money, but they've been getting greedy and that's damaged the trust between them and those who use YT. Honestly, T&C are fine, and ads do pay for the service, but it's not an excuse for abuse by YT. I'm also not a fan of people wanting everything for free - there's a cost involved in providing the service, and those ads also help pay content providers, which encourage them to provide content. Without those ads, a lot of people suffer. But equally there has to be a better way, and YT won't investigate that unless they're forced to, which isn't helpful.
So yes, your point is perfectly valid - up to the point that YT is being greedy and abusive - that's when I start to see a valid argument against them.
But yes, alternatives exist. Such a shame there's been a campaign backed by certain corporations to suppress them.