And YouTube continued to grow quickly last year, so in the empirical sense it is doing well. The nature of the platform is that it is full of content producers with massive followings. If a small portion of those producers get dinged, they can make a lot of noise, but it doesn’t necessarily amount to much compared to YouTube as a whole.
Also, attempting to do broad searches for most news topics simply returns CNN, ABC, etc like clockwork now, and they're not at all the type of content that got Youtube where it is today. It's become more and more MegaCorpTube in recent years.
Why is YouTube so insistent that we not use our own minds to decide for ourselves? Perhaps because they really would find it more preferable if you didn't do any of that thinking for yourself. That's not how advertising works. [0]
[0] https://www.goodreads.com/quotes/781798-universal-literacy-w...
I've had the app on my phone for over a decade and I share your sentiment with trending vids, but there is a lot of excellent content that would not exist without youtube. The recommendation algo is pretty good these days.