Non-personalized ads pay a fraction of the money targeted ads can get you.

Non intrusive ads are pretty much just amal banner ads on the side, they pay near to nothing.

Youtube barely makes any money as is, if you introduce even one of these changes they are far into the red again.

Now if we also remove any tracking, then Google has no reason at all to keep it going and will just shut it down.

I despise Google too, I avoid them like the plague, my phone is deggogled and all my apps come from third party storefronts. But YouTube simply is not a profitable business without personalised ads and tracking.