YouTube has only the most minimal standards for which ads they won’t run, and those standards apply to PfP as well. “Association” is not the issue.
This. I would say publishers generally have much better taste than YouTube.
Who is this hypothetical person who gets outraged at YouTube for having one of their videos embedded on a page with objectionable adverts? I’m sorry but their stated reason is crazy, I can put any site in an iframe on my website, that doesn’t mean they’re associated with me.
Come on, the YouTube player is so popular, everyone already knows this is just a YouTube embed.