Unfortunately youtube loads a resolution that is smaller or equal to the embedded frame, I didn't find a way to force full hd. If you full-screen it and then change the resolution, it should play nicely.

The adds are there because I might have mixed some copyrighted music in the background, will have to iterate on that.

In general, the youtube embedded videos are probably not a professional way of putting a video on a product homepage. But it is definitely the cheapest+easiest way.

Try Vimeo instead of YouTube.