This is simply wrong. Videos are still rendering in overlays in windows in Chrome right now. There are many reasons why overlays are still used.
If video rendering used overlays, then YouTube could not put the toolbar or subtitles on top of the video, and they’ve been doing so for a long time.
https://issues.chromium.org/issues/40140067
>In today's Chrome, when a device supports hardware overlays, we promote at most one video's frames to hardware overlays.