Yes. It's a solved problem from a technical perspective. However, as with individual blogs and websites, discoverability is fairly poor. And, in the case of video in particular, not only is individually hosted content not monetized in general (unless you're a subscription site of some sort or beg for donations), but it can actually be fairly expensive to do at scale.

The issue is that many people aren't really looking for a way to host their videos; they're looking for someone to host their videos for free, with easy search, and to actually pay them money.

It just goes back to considering who your target audience is in order to market your blog. There is no reason why niche blogs should lean on SEO/target ads, when they could more effectively just directly advertise in like minded niche placements and capture their desired base. If you have a website full of videos about car repair, buy ad space on vwvortex forums. You can't ever possibly know all the disparate secondary interests of your target audience (although FANGs are trying to model this), so stick with what you know, your niche.

My thoughts exactly. And beyond just payment, the network effects are massive.