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Twitch already does this for their livestreams and has been doing it for years. I'm just surprised that YouTube has taken this long to get around to injecting advertisements into the video stream. Although I think if YouTube decided to try ad injection the adblocking community would fire back with something novel to thwart their efforts and the eternal arms race would continue.
I've read in that thread that there are already ad blockers for twitch too but I haven't looked up how they work or how twitch inserts the ads.
They work, most of the time. Just a bit clunky.
If there's timed annotations (like say for closed captions or chapters/sections), then there will be some sort of mechanism to line them up with the modified stream. Then compare that with a stream without ads (which might require manually removing all ads or using a premium account where ads aren't inserted) and you'll be able to estimate regions of the stream where ads have been inserted. If the timed annotations are dense, you could see where the ad begins and ends just from that.
Also if the ads themselves include timed annotations, there would be a difference in that meta data that would give it away immediately.
Or if ads are supposed to be unskippable, the metadata will need to let the client know about that. Though they could also do that on the server side and just refuse to stream anything else while it's serving an ad.
Given that, the solution might be to have a seperate program grab the steam and remove the ads for later playback. Or crowdsource that and set up torrents, though that would be exposing it to copyright implications.
The most likely situation is just having apps that watch the content, trim the ads off, then drop it off into a folder.
You get home, watch your downloads, put it up for the night.