You fail to mention that YouTube allows people to monetize off the content they create. There are a whole lot of content creators whose sole income source is YouTube. Many of those videos wouldn't exist if there was no monetary incentive. So, yes, YouTube does profit off a lot of content it doesn't own, but it generates a ton too.
Not really. The truth is more that Google lured independent content creators to their platform with monetization, and is now driving them away by gasligighting them with obscure and impossible to follow rules, to make room for cable tv news shows and inane reality tv stars.
Most of my favorite youtubers have been demonetized, and had to change their content if they wanted to survive. The Alternative History channel was gaslighted pretty bad and their G-rated animated mini-documentary videos got flagged for hate speech(?), while Logan Paul made tens of thousands of dollars from YouTube monetizing his disrespecting a Japanese corpse.
