Those countries have their own domestic solutions already, rutube and bilibili. Why would they care about an app that only caters to western media products and monetary contribution sites?

This argument is absurd. Why would they care? They do not care about western media, but malicious developers living in such countries will try to make some money by inserting ads and distributing the app, for example. Or just putting malware.

This is not an app for YouTube without ads though, and it is published on the play store already...

I'm aware, I used YouTube because in the video they used Newpipe as a direct comparison.

Well, no point having a discussion here if you didn't even spend 2 mins to read the manifesto of the company that owns the app.

I read the whole web page, and all I can see is an app that is purposefully restricting forks, so they want to be the only ones distributing it. That alone makes me suspicious that there must be some reason like paywalling it in the future or adding some way of making them money. Of course they are not doing it at launch, but it's something to be cautious about specially when looking at the license.

Those countries have their own domestic solutions already, rutube and bilibili

No idea about bilibili, but rutube is pretty much dead and a complete laughingstock. Everyone there uses Youtube.