I can say that's the case for me. YT Premium is the only paid streaming service in our house, and we pretty much only watch it on the big TV.
And no ad blockers available for most devices connecting to a TV which could also push the premium numbers.
If you’re paying for a music subscription service you’re better off subscribing to YouTube premium and getting YouTube Music for free.
If YouTube Music wasn't so shit, I'd agree with you. Right now I'm holding off on YouTube Premium only for the fact that they want me to pay for YouTube Music too (which I don't need nor want). If they had a cheaper plan without YouTube Music I'd jump on that immediately.
.. because it's significantly more difficult to block ads on the TV. I'm not sure if Pi-Hole can do it?
PiHole can't block YouTube ads but it's trivial to block all ads on Android TV. The ease of it was what made me move away from Roku.
Pihole wont work. The easiest solution is to sideload SmartTube onto an android/firestick device. If you a lil more effort but to have it work across many connected devices, the way to go it iSponsorBlockTV