It's not free if the content we upload becomes content Google offers to other users for entertainment, which advertisers pay Google to be a part of. It's not free if Google offers advertisers inroads into our "mandatory unified profiles and connected personal data streams".
The OP is merely expressing what a lot of people are experiencing, and not just technical people. I know plenty of non-technical people who avoid mainstream Google because it's like "getting a passport" and "signing over your life" just to upload a video.
The user experience of being part of YouTube is crap. The barrier to entry is too heavily weighted towards "registration" and "validation" rather than just having fun and joining something fun.
Email is NOT related to Youtube, not by any stretch. So you get emamiled when someone posts a video? Wow, that really is lame. That notification could happen a million different ways, including an email to your Yahoo email address.
Google forces completely different services to be connected. It's no longer possible to rate a video out of 5 unless you have a Google+ account. It's no longer possible to have a Google+ account unless you provide Google your mobile phone number and access to all your contacts, etc etc.
Youtube was once a cool service for YOU, US. Now it's a service for "content partners" and YOU/WE are permitted to join in, provided that certain commercially motivated conditions are met. That's crap. It's like a movie cinema denying entry unless you wear a (free) t-shirt advertising their cinema. VikingCoder would say "hey, it's a free t-shirt, what are you complaining about". Well, I just want to watch a film, I do not want to be locked into the Cinema's desperate social media marketing eco-system.