I would agree with the assessment, but isn't your typical kids TV channel just as vapid? Are US lawmakers worried about the ads and commercialism we bombard our children with on conventional television?
We have a dedicated public television channel where I am and the content is significantly better than YouTube: https://pbskids.org/
My kids will tell me about history and science that they pick up from those shows.
I don't think I've ever heard anything from them that I liked when it came to YouTube content.
Folks behind their content are motivated by creating good content for the kids rather than commerical interests.
People in there are actually educated about kids' development, with actual entertainers and scientists.