I get they want to work against ad blockers, but as a Premium member I really wish there was an easy way to watch a video without it polluting my history or recommendations. I don't want to watch ads just due to that.
IIRC i stopped using this because it takes way too long to toggle on/off and another crucial mistake they make is that YouTube acts like its chrome incognito where you want full privacy and an anonymous browsing experience, I do not want that, I still want to be able to see my own history like my last few search bar queries, I just dont want NEW entries added when in incognito mode. essentially i want read only mode
I would love something like what Spotify has - private listening. In the meantime, I just go into the YouTube history and remove anything that I don't want to pollute my recommendations. Turning off search history entirely also is good.
If you create a new profile and switch to it it keeps your Premium benefits with its own watch history. I do this for communal watching on the living room TV.