Alternatively, the NewPipe app available on F-Droid can be used to both play videos in the background and download them.
They do take easily accessible apps that use youtube-dl under the hood pretty seriously. I guess it depends on how much of an effort it is for them vs how much of their bottom line ytdl is cutting into.
A downloaded video doesn't generate ad revenue.
More critically, Youtube relies on network effects and people using it. Part of the reason we share family videos, educational content, and other things is so it's, well, shared. For me, the reasons to use Youtube-dl are:
1) People in bandwidth-constrained settings. If I post my videos, and colleagues in some countries can't watch them, I'm going elsewhere.
2) Remixing. If I can't make collages of family videos, I'm going elsewhere.
Youtube can serve masters like me, where it's an effective platform for sharing videos I want people to watch, and where the goal is dissemination. It can serve masters like the RIAA and the MPAA, where the goal is monetization and control. It will have a hard time serving both.
I suspect if it tries, people like me will go to someone who caters to us. A YouYesYouNoNotTheRIAAYesYOUTube. If we do, I think there will be enough of a network to start to syphon people off, and eventually, cat videos and Aunt Alice will be on YYYNNTRYYT.com, while corporate video will be on DRMed Youtube.
At that point, we'll have a replay.
Youtube-dl has an integrated search function, so you actually don't have to open the video in a browser at all.
That's secondary to the rest of your comment, but I thought it was worth noting.
They took that poison pill already, I really, really doubt they ever new pop music stops being part of youtube in the future, the audience is too large. It would be like them taking music off of the radio because people could record it on reel-to-reels. They might stomp around a bit and try to use the law to get what they want, but when push comes to shove the big labels will keep their music on youtube.
They absolutely need eachother and can't afford to be nasty to eachother.