Statistically, yeah.

Because the most watched youtube videos are music videos, and people listen to the same music regularly.

Also because some videos have been popular enough that people wanted to show that to their friends, and regular users don't know how to use the history, so they want to find it in their home page again.

I assume the algo just doesn't know the difference between videos that are rewatchable and ones that are not, and does that on some statistical metrics that don't make sense in a lot of contexts.

When you think something is stupid, the answer is usually there is something we don't know about it.