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If ads is embedded in video(like product placement, sponsor etc). You still see the ads.

Great example! YouTube is currently being sued because people with Premium still get ads.

Granted they're the ones creators put in their own videos, which is kind of a technicality. Premium does block the overt ads that YouTube itself pushes. (There's no telling if it blocks submarine ads that are videos) However, it was promised to block all ads, and that's what the lawsuit is about.

I don't see why that's a technicality. Youtube has plenty of rules already for their business partners. They could definitely make it so e.g. no paid advertising is allowed, or all paid advertising must have metadata attached so that premium users never see it, etc.

Amazon prime added the ads back no?