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Is there a way to take advantage of YT Premium when using yt-dlp? Like higher quality maybe?

yt-dlp has the ability to log into sites. You can give it your username and password, or hand it a persistent session cookie extracted from your browser. If logging into a premium account gives it access to higher bitrate streams, it can select those.

IME the only thing Premium is good for is getting rid of most ads and enabling background playback in YouTube's official app.

Yes. I am not sure YTP grants access to higher bitrate streams.

In any case, I am using YTP as a leverage. It's well-known Google doesn't like Firefox and yt-dlp, so I am using those with YTP to make the point that maybe they should think twice about it.

Reply on news.ycombinator.com