> Really, how is this any different than recording TV on a VCR (or DVR)?
Each time a viewer watches a video a monetised channel makes a little more money. This money either comes from ads or Youtube Premium fees (Premium viewers are worth significantly more than free viewers).
Programs like yl-dlp bypass this - non-premium users can download ad-free videos contributing a single view to a video and consume that content any number of times. Youtube no longer makes advertising revenue per view, and content creators no long get their cut.
None of this is the case in TV, where ad revenue must be based on metrics other than straight-up view count, which cannot be counted meaningfully.
> But the website could embed ads into the downloaded video.
Many video creators do embed their own ads, but revenue from these ads are often based on view counts maintained by Youtube as well.