They're probably still tracking me even though I pay right?

Youtube forcing a subscription on everybody would be self-sabotage. Their existence and ability to make profits rests entirely on ads. And while the ads could be more ethical, they choose instead to track people in every possible way, exploiting their identity and fingerprint on the platform -- and outside the platform -- for maximum profit. So the ads are not a choice, but the soul of the product. Peertube, instead, does not exist to make profits.

So yes, exploited by ads.

True, but as a typical user, I wish they'd just be straight up about it.

Basically, it's user experience degradation until you're forced to sign up.

How about trying to just reach out and offer a service without killing my current experience?

I pay for other subscriptions so this isn't a money thing, but I won't for youtube on principle. They ruined that platform.