It looks to me that they are ramping up YT ads because they performed well in their quarterly earnings. I think Google is more self-aware then you are giving them credit.
YouTube has had a strangle hold on video content for over a decade. I'm sure this change will work out short term ... excuse me ... I'm sure this change will make their quarterly earnings look better temporarily.
Long term, however, I expect this direction to provide a foothold for competitors to take a bigger slice of the video hosting pie.