The problem is that no one can compete with YouTube. YouTube offers free 8k video hosting for everyone. And you have a relatively small number of ads. It’s basically impossible for any other video hosting service to provide this all for free.

You would absolutely get DMCA takedowns. YouTube’s system is designed to allow copyrighted content without getting it completely removed.

With e2e encryption, you don’t need to trust the server, you only need to trust the clients.

Maybe, but this was a huge increase in usage. Reddit never expected to deal with anywhere near thousands of subs going private simultaneously.

Reddit didn’t design their systems around needing to deal with a huge number of subs going private all at the same time. It’s not surprising that it caused a short outage.