I wouldn't argue that the ads are terrible but it's what you agreed to by using an ad supported service. If you don't like their ad selection, the only ethical choice is either to pay for Premium or stop using YouTube. Watching someone's work without paying them isn't fair to the creators and it's a great way to ensure the market moves to worse content which is cheaper to produce.

I’m unmoved by the creators angle. Google exploits creators too. It’s best to just give them money more directly (like Patreon) than give Google money and hope they forward the creators a sensible amount.

If Google wants me off their service because I don’t watch enough ads, that’s their call. I’m not going to make a hufflepuff about it. But their ad game is garbage.

I’m not saying they’re great, but it’s a known quantity: you watch ads, advertisers pay Google, they pay creators. Yes, too much of that goes to the middleman but that’s a reason not to participate at all.