For the first 5 years videos were limited to 10 minutes. Clips of things were popular and there were things split between many videos, but that's not what I remember the people around me using youtube for.
It was not just a nerd thing either, I remember someone I was dating in the mid 2000s bemoaning that YouTube had cracked down on TV content.
Nowadays even when paying for content, it really feels like extortion, it’s unfair anyway (prices constantly increasing, and you still get ads even if you’re paying… might as well go back to pirating stuff)