They have a monopoly on search, that they use to censor any competing video hosting. If they go and start censoring their own service too, this is a very serious problem.
If the profitability of Youtube is on the table, then so should be antitrust, and Google should not be allowed to own it.
Even more important from Google's point of view is it was the way to push Chrome to dominance. And a way to keep it there ahead of any potential competitors.
Which is valuable because of the data and ability to block ad blockers. That is, Google's ad ecosystem.
How did YT push Chrome?
It's similar to how "DOS ain't done until Lotus won't run", only with YouTube and other browsers.
Google optimizes YT for Chromium-based renderers. Or rather, Google pessimizes YT for other renderers.
I'm not sure, but I don't think the answer is that it obviously won't materially change YouTube's profitability.