This isn’t happening in YouTube Music, the paid music platform. Instead, it is users putting together playlists of normal YouTube videos and presenting them as an album playlist while maliciously inserting a monetized, spammy video into it. As far as I know, YouTube Music wouldn’t really be vulnerable to the same kind of abuse.

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I am a big fan of content-specific instances. Some instances off the top of my head that fit this description:

• bookwormstory.social - Instance about the Ascendance of a Bookworm series
• ani.social - Instance about anime/manga/Japanese media
• slrpnk.net - Instance focused on the climate crisis and related issues
• programming.dev - Instance focused on software development
• startrek.website - Instance about Star Trek
• literature.cafe - Instance about books and writing

…and I am sure there are many others. I just think that having a focus like that provides a more interesting local instance environment than a large, generalist instance, though both have a place.