Now that might be fantastic depending on where you come from. If you have disposable income, it is a huge win to have a non ad supported video platform which might even be more privacy protecting. If you are a poor kid using YouTube to watch MIT OCW and khan academy and innumerable other resources, well you are screwed.
MIT and Khan Academy could easily host their content using BitTorrent and reduce their bandwidth usage by 95% ( https://nrkbeta.no/2008/03/02/thoughts-on-bittorrent-distrib... )
What youtube gives to the poor kid is instant and free access to a huge audience. Yes, it's comes with an (admittedly not really high) risk of a false positive and blocking for copyright reasons. I suppose the kid is smart enough to also have copies of the performance on other services, and safely stored locally.
But it’s simple, video is more versatile, and by removing youtube’s monolithic dominance, you remove the single point of failure that copyright cartels have been able to attack.
As an example, imagine a separate youtube-clone dedicated to education that was actually willing to fight for fair use! Or a youtube that didn’t automatically demonetized you for swearing.
Internet already gives these kids (and the rest of us) both access and audience, we have just been stupid enough to lock large parts of our cultural heritage into corporate silos, protected by “intellectual property”-laws. Competition wouldn’t solve this completely, but it would make it harder to distort the market.
YouTube can afford to offer a lot of value to the customer, much more than it would have been able to sustain by itself without the Google support.
Without offering all that value, definitionally, Youtube would not be as attractive to consumers.
Therefore consumers would be more likely to choose other alternatives like PeerTube
Therefore projects like PeerTube would have more support and therefore would develop more quickly.
An unrelated company to their business model is something like Waymo