Well, YouTube's core audience isn't going there for TikTok-style content (no judgement on that content either way.) They mostly come for vlogs, let's play's, tutorial videos, video essays, etc.
Also worth noting that YouTube is a money sink so it's not like it's the most lucrative business model.
I've heard the argument a few times YouTube actually loses money, besides just being a money sink. Does anyone have anything from Google talking about margins or profit/loss of youtube? I've never been able to find anything concrete on the issue. This is the best I've ever been able to find [1]