Well even if you'd keep advertising if you turn YT into a public utility or non-profit, MUCH more of that money would go to creators. And/or much less advertising. Or less annoying or more discerning ads. And of course no demonetization because you talk about problematic issues.

Without advertising you'd need some kind of revenue. I imagine something like e.g. a EU wide "universal content subscription" or something like that. So if you create good content the various distribution channels simply track what you watch, anonymize it (firefox has this new system that got them in hot waters) and distribute the money from the giant pool to the creators.

Maybe start with a universal newspaper subscription so we'd have a free press again, new newspapers or channels that produce independent news with only the viewer as a customer, without ads.

For music in the EU / Germany there are collection agencies that already do this sort of thing. So it's not even without precedent.

Obviously there are tons of issues to work out, but the biggest is simply that the elite do everything to gain and maintain power or wealth and this would go contrary to that.