It allows me to pay for a service that I use and I know costs money to run - for a reasonable fee (although it just went up in price and is less reasonable now), given how many hours our family watches per month on YouTube.
Creators still get paid from YouTube premium views, and some creators see better revenue from that than from YouTube ads. I like supporting the creators I watch. I refuse to participate in regular ads. Sponsored segments are (barely) tolerable and skippable.
I run an ad blocker and try to provide compensation to the sources I consume regularly. Patreon, news subscriptions, YouTube premium, etc. So just blocking ads through Newspipe or similar but still consuming a lot of video - doesn't feel right to me.