Those strong words would need a real, clear contract between google and the user.

"We serve you a video and we track everything you do, allmost wherever you go online"

I haven't seen it spelled out by google like this and surely this is genral knowledge around here, but most people still don't have a clue about the general concept.

In either case, even if the ads are blocked, you still pay with your data, by being tracked what you watch and when you watch it - and in combination with always online smartphone controlled by google - with whom you watch.

In other words, if it would be only about ads or no ads and just the service, I would agree. But this is not the case, so I also have zero question about moral with this one. It is more about self defense of your attention.

So yes, we need other payment models than advertisement. But I doubt this can come from google, no matter how much I would pay them, for a single service.