> Such a strange business model, making the free version below acceptable.
That's because the core product is not anywhere near worth what they charge for it. The youtube interface is a nightmare for users and creators alike. I have very little controls over what I do and don't see, how I can filter or search for content, or how I can search for new content. History of both videos and comments are effectively non existent and impossible to reasonably search or archive.
It's not a service so much as it is a copyright clearinghouse.
If they had an actual experience with worthwhile features to offer then they wouldn't have to artificially degrade the free experience to convince you.