I'll try to explain why I use adblock, use YouTube, but won't be paying for YouTube premium.
First of all, I absolutely will not have ads in my own home. Ads are bad enough in public, but they will not be in my home. This is completely non-negotiable.
So then, what are my choices? Well there are paid-for services like Netflix, for example. This is a straightforward choice for me: I either pay for it or I don't. Simple.
Then there's the web. The web is essentially a public place. It thrives because it's free at the point of access. Unlike netflix, YouTube put itself on the web. It would not have become anywhere near what it is if it were like Netflix and behind a paywall. They used their "free" and "public" image to make themselves the only place on the internet for videos.
What they want is to have their cake and eat it too: they want to be the dominant public platform, but they want guaranteed revenue like Netflix too.
What I want is just to pay for my bandwidth fairly. If I pay for YouTube (which I must because remember ads are non-negotiable) then I'm not going to pay for any other platform. So YouTube grows as a monopoly. This is not the web.
So you might say, well just stop using YouTube then, but why should I? I don't want to use YouTube. I'm not there because of anything they deliver, I don't care about 4K quality or whatever. I'm there because I want to learn how to put up a shelf. A lot of that videos are posted by people thinking they are doing a public service and sharing knowledge. If YouTube were behind a paywall then they'd post them somewhere else.
So they just need to make up their mind. You want money? Then don't be public. Watch other platforms grow overnight. Watch P2P video sharing grow (which is how it should be). You want to be public and be the only video platform? Then I'll be blocking the ads when I try to access video in the only practical way I can.
Also, if this is about the cost then why not get the uploaders to pay for it? After all, it's their content that's being stored. Again, because if they did that then YouTube would not be the Borg of video content that it is.