Hmm interesting. I sort of see your point here..
I would worry that a much more decentralized approach would just lead to inconsistent and fragmented moderation, and it would feel arbitrary.. Most creators, and viewers, wouldn't know where to go to find their content.
For better or worse, YouTube's centralization makes discovery very easy, and incentivizes creators to invest in their work because they see greater returns from such a large audience.
I'm not sure I agree that in 2024 it's "not impossible" for a business to host completely unmoderated content on the Internet, especially video.. The amount of behind-the-scenes moderation (by humans or machines) that happens on the big platforms has been well documented..
I think video hosting is something that is hard to do not-for-profit, at least in a way that is approachable for the average viewer (i.e. doesn't have the barriers of something like PeerTube etc)..
And even if they could host unmoderated content, I think we all know what happens there (see KiwiFarms, 4chan, Rumble, etc)... they become spaces that the average creator doesn't want to be associated with because all of the extremists (of all kinds) end up there.