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You brought up specifically HD. I’m willing to watch ads so that YT can continue delivering even lower quality videos as long as those ads don’t interrupt the video.
I misunderstood your point about no ad breaks, I thought you meant no advertising at all on videos.
That said, HD was just an adjective. I can edit and remove it if you want, but the point still stands that hosting anything at YouTube’s scale is stupid expensive. Even if you cut the data load again and go down to 480p it’s still crazy expensive that requires compensation to exist.
Something like 275,000 hours of video is uploaded to YouTube daily and users watch about one billion hours daily.