I agree that this definitely looks like the play - Google's "Prime" service. I only hope that they choose a more reasonable strategy for migrating users to it as they expand features. YouTube Red can become part of a Google One tier for new users with older users grandfathered. Integration of existing user bases can happen later.
Storage is a cheap benefit to provide for the average user who won't use it all. YouTube Red is already $9.99 - just add the 2TB Drive option for free and starting selling everyone on the Google One branding. Please don't screw this up?