This might be a controversial take, but I don't want to see soft-core porn ads. I don't want to see scam ads. I don't want to see the worst of the worst. It is not a necessary state of affairs that the lowest common denominator ads are ads that are explicitly attempting to prey upon the least informed, most vulnerable members of society.
The fact that the worst ads are the way that they are is indicative of YouTube's willingness to engage in user-hostile activities.
If they were less willing to engage in hostile ads, there would be less hostility towards their ads.
YouTube's solution is extremely simple: vet ads and don't accept money to run hostile ads.