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What is something that definitely should not exist?
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There is a subtle, but important, difference between letting people know your product exists or improved, and brainwashing people into buying your product.
Is a grocery saleman at the local saturday market allowed to shout about the sale he is doing on strawberries? Because that is also marketing.
I fully agree that the average advertisement you see on youtube is pure cancer. But what about an advertisement for an emergency fund for a disaster?
What about a sponsored video of a game?
Where do you draw the line?
As usual with "where do you draw the line" questions, I suspect there's a reasonable way to do it, but I don't know what it is, and finding a good answer might take some work. It would be worth investigating if there was any possibility advertising would actually be reined in.