Check out DTube (https://d.tube/) - it's effectively a decentralized YouTube built on IPFS. It's built on Steem to incentivize video uploading/engagement (https://about.d.tube/)
1) Steem in general is a mess. Its controlled by the parent company, you cannot mine it - the only way to generate it is on their content platforms. Its only a cryptocurrency insofar as it has public transaction records, without distributed proofing the integrity of the blockchain is faith in Steemit. Likewise, the value of the currency can solely be attributed to how the public perceives the value of a Steem token. Thats like every crypto, but most cryptos are trusted by their distribution of work, time, space, or stake. For Steem, its about the popularity of Steemit websites.
2) Using IPFS for the video hosting is what I'm advocating for but nothing addresses the second. D.tube simply centralizes on the site and depends on the valuation of the cryptocurrency keeping the lights on when guaranteeing an available seed of every video on the site. If you host your own d.tube instance, you would need to seed every video uploaded lest risk videos being lost.
Additionally, to my knowledge, getting money out of Steem is quite challenging since there is no corporate business account on Steemits end. You have to use third party wallets and exchanges to sell Steem. Good luck trying to onboard normal people into something like that.
That all being said I don't think D.tube is bad. Its a very novel approach to trying to bootstrap a video site by trying to incentivize participation with a deterministic token given out on popularity. But that depends on constant, sufficient growth to keep the hype going so the token isn't arbitraged down to nothing in value. Its only worth anything for its scarcity determinism, which isn't worth much in an endless sea of cryptocurrencies.