I’m all in if something like Peertube gets adopted more fully, but given the sheer amount of space YouTube takes up it seems unlikely to be at the stage it is currently with a provider like Google.
For my own usage: I could substitute background noise with music (either through another provider like Spotify or locally hosting the music and streaming it with Jellyfin), and then more long form content could be done with other providers (Netflix, Disney+, or renting from Google lol) or again using DVD’s or locally hosted videos, but it would certainly be a challenge and I’d miss a lot of the content.
My only comment is I was surprised my work - which uses Windows and has closed source software exclusively - has VLC installed on all workstations and even as the default media player as well. It’s a testament to how ubiquitous and approachable VLC is to be included in such a fashion over just Windows Media Player or some other form.