Serving requests is a feature of Youtube and if they don't want to serve your client... well you didn't pay for it anyway.
The equivalent here is if Sony owned the most watched TV network (by far) and decided that it would work fully on Sony Bravia tvs. People with LG or Samsung TV's could only watch a degraded version.
They corned the market, drove everyone out of it, and are now rent-seeking. Can't say you have much of a choice between youtube and any other video provider that has the same content on it.
We all pay plenty. Don't forget that every product you buy that advertises on YouTube forwards some of that money to YouTube, even if you then don't watch the ads. I would be happy to pay the same amount for everything, but somehow block vendors from spending any money on ads, if it were at all possible.