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YouTube has found a new way to load ads | AdGuard Blog
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Sure if you fundamentally change what YouTube you can make it work.
You need very small buffers or complete disablement of seeking even outside of ads. Otherwise a client can reconstruct the video without viewer interruption.
People however expect to be able to skip ahead in YouTube videos, otherwise its just TV.
Nope that's not necessary at all, the client experience can be the same as it's always been. See my other response for what I was thinking of.
Also, this doesn't work very well in the current YT implementation. If you skip around a video with ads, sometime you'll get ads even though you've just watched a pre-roll for example.