If you're not paying for YouTube, they have to get money from somewhere and if those somewheres don't want to advertise on non-family friendly content, what are YouTube supposed to do? Go bankrupt on principle?
They could set something up so creators could mark videos as premium, and then people have to pay a certain amount to watch.
Google already has the payments side of things covered from their other services, it really wouldn't be a stretch to add something like this.
Creators are basically having to do this anyway using a different site (Patreon) so Google should look at how to bring that internal to them.
That also neatly sidesteps the whole demonitized for being advertiser unfriendly issue, because the only people paying for various content are people who want to watch and support such content.
https://support.google.com/youtube/answer/3249135?hl=en
They killing/changing it:
http://variety.com/2017/digital/news/youtube-kills-paid-chan...
Isn't that basically YouTube Red? Which almost no-one pays for...