Earlier quoted context omitted.
I had the same realisation. At this point, YouTube Premium is probably the subscription I would give up last. Premium is (for now) quite a nice experience, and there is so much nerdy niche content that would never get made commercially, certainly not to the same scale. I have noticed that my recommendations seem to be getting worse lately, but unsure if that's a flaw in the algorithm or because I've spent years drain…
Out of curiosity, what does Premium do for you that is a positive? This is an earnest question, as recently my old Android phone died and I got a new iPhone. On Android, I'd just use Newpipe[0] which I absolutely loved; they kept up with Youtube's breaking changes (usually a day-of debug build until the fix reached the main release), and it was such a nice and out of the way music player with everything you could wan…
It allows me to pay for a service that I use and I know costs money to run - for a reasonable fee (although it just went up in price and is less reasonable now), given how many hours our family watches per month on YouTube.
Creators still get paid from YouTube premium views, and some creators see better revenue from that than from YouTube ads. I like supporting the creators I watch. I refuse to participate in regular ads. Sponsored segments are (barely) tolerable and skippable.
I run an ad blocker and try to provide compensation to the sources I consume regularly. Patreon, news subscriptions, YouTube premium, etc. So just blocking ads through Newspipe or similar but still consuming a lot of video - doesn't feel right to me.