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Has YouTube Blocked Your Adblocker Yet??
(strawpoll.com)
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Making their service more attractive to customers is precicesly what they're trying to do.
It's just that an advertising agency's customers are not the folk who watch, read or hear the ads, it's the folk who pay for the ads.
I am not sure if it will work out like this though. The amount of ads they are forcing down peoples throat is isane. Eventually it will make people consume less videos and with that less ads overall.
And thus the enshittification cycle completes
Sure, could be - but keep in mind that they have all the relevant usage data at hand. Any decrease in service popularity among users (or indeed any kind of user behavior) is immediately visible to them. They have the means to know exactly what annoyances the market will bear.
And considering that YouTube still holds a de-facto monopoly on video discoverability within the entire anglophone internet I feel like it's safe to say that the market will likely bear a lot more annoyances :P