It only seems like a bad deal because everything we’ve been getting has been free so far and the content isn’t coming from major Hollywood producers. It’s about on par with Netflix and Disney+, except we consume a lot more of YouTube. I’m pretty sure they are also taking into account that some people will continue adblocking. They need a lot more moderation than Netflix of Disney+ and they have a lot more load on their servers and consumption per user.
As an aside, people can downvote all they want, but if they are really going to push for this, they might better spend their time searching for alternatives that won’t domino alongside YouTube if this is countermovement is really going to be a thing.