> The root issue here is that the thing people want-- a video hosting site that is free, preserves uploads forever (by contrast with Twitch, which has limited VOD support), has few to no ads, and doesn't algorithmically police copyright-- is just impossible.

It's worse than that. What you've listed is what the viewers want.

What the content creators want is all of the above, but to also get paid money, and to receive free marketing for their content.