Google is desperate to display ads on YouTube. YouTube videos, even of poor quality, often rank highly in Google search results. This means that Google can double its profits by displaying ads on YouTube, in addition to its search advertising revenue.
Is there any reason a grocery store should be a movie studio?
This sucks the air out of the room for smaller companies to innovate. Search would be much better if it wasn't being shoved down our throat by a single company that controls (or buys access to) all of the panes of glass Americans use to compute.