Okay, well, if I understand this correctly, the home screen is blank and has no recommendations for you. Why do you want a home screen? You want recommendations? If you want recommendations then clearly the deal is to enable history. If you don't want recommendations then there's a blank home screen. It's a trade: you're not required to enable history, and YT's not required to recommend anything.

Is the dialog preventing you from navigating to Subscriptions, Library, or other screens? It seems like the dialog's just livening up an empty space, really.