You're absolutely right. I use SponsorBlock and uBlock Origin on Youtube and will continue to do so until there is a way to pay to 1) remove all ads and 2) remove all data collection by Google. Until then, I'll continue paying with my data while blocking ads.
No, it means that I'm willing to pay Google for YouTube without Google Ads with either my money or my data. I will not pay with both. It is that simple.