There's probably something relevant here for Nostr in general. I only pay for one of my relays, and it's a stupid low amount. Most of the network that already exists seems to be mostly charity. Charity will run dry really fast at the costs involved with something like video hosting. It may work for a super niche group (like us), but global YouTube levels? Not seeing it. I want to. But I don't. Even if we do it, content diversity will be so low that most of us still use YT anyway.
Discussion
I avoid using YouTube because I don't want to be dished up content based on their algorithms. I also hate ads and giving data to Google who then uses it to target me with more ads.
I would be willing to pay small amounts of sats per video to see something I'm really interested in and not get any ads. However that model would never work on the 96% that are willing to pay with their attention and data. Still I think it's worth pursuing even if it only attracts a niche audience. YouTube started out with a niche audience too, all these things do.