I imagine folks wouldn't have a problem with this if the ads weren't already so aggressive. Numerous ads before and during the content break it up too much. And if the content is extremely short form, it completely ruins the experience.

The number of ads and their length should be proportional to the length of the video. And any creator doing built-in ads should also not be able to inject a bunch of other ads. Burying content is an easy way to get avoided.

Print media had limits for advertisements, heck, in magazines they were premium real estate for the finest graphic designers to put together incredible imagery to get your attention. This level of care (not necessarily images or what have you) has yet to translate to the web.