This sounds like Valve's "piracy is a service problem" ethos, butvfor ads, where YouTube is crossing the threshold of making the ads so inconvenient their efforts will be counterproductive (but not quantifiably counterproductive to bean counters... Yet.)
I agree. I used to watch youtube with ads, no problem. But then there was the infamous update that made ads really annoying, usually it was 5s before a video and then it became two unskippable ads in the star plus an ad every 10 minutes or so. That's when I started using an ad block.