Google's business model requires providing free services, if you take advantage of what they willingly offer (which is not theft), and they choose to spend more money than they make, their current business model becomes untenable.
However I don't know what their business model would turn into if everyone did what the article suggested, and the article made no mention of that either.
In addition, I looked into the author's github commit history and one of their projects is aimed directly at stealing YouTube content.
An all-out war on Google's ad infrastructure may protect your privacy but how do you propose people actually get paid for the content you consume? Do they do it for free? For exposure? Sell subscriptions?