Shorts are treated as a privileged feature; they aren't going to simply hide them just because a few of us have the unmitigated gall
not to watch them. That's not to their benefit. Youtube and the other platforms want to manipulate users into getting on that particular hamster wheel, and the app's UX reflects that. In that, it's not dissimilar to how streaming services routinely prioritize engagement maximization over user experience. If it takes you a few more clicks to find your
continue watching list, that's your problem.
I'd be surprised if the algorithms have much say on when and where shorts show up in your feed versus just inserting them into specific spots in your feed that were determined by a whole lot of user testing to see what's most effective. There might be some logic to tweak it, but overall placement is probably fairly uniform across users.