Ads are a violation of the sanctity of our minds. They are not entitled to our attention. It's not currency to pay for services with.
Then they have to go to advertisers and say, “advertise on our network where all the wealthier people are not.” A brand like Tiffany’s or Rolex (both huge advertisers) aren’t going to opt into that.
At some point some shareholder value maximizing CEO is going to sit down and notice just how much money he's leaving on the table by not advertising to paying customers like you. It's simply a matter of time.
Take a third option. Don't pay them and block their ads. Block their data collection too. It's your computer, you are in control.
If you truly have those beliefs the right moral action is to not use YouTube at all but god forbid you'd have to make any sort of sacrifice.
Edit: let's step through this. If I use a towel placed over the computer to block ads, that's morally the same as using blocking software, I think? If I block the ads by putting my fingers in my ears and staring at the ceiling, also the same thing, morally. If I block them by watching them in a negative frame of mind, saying that I dislike ads and won't do what they suggest, I'm still doing the bad thing, the same as using an ad blocker - if it is a bad thing. My obligation, if it is an obligation, is to be receptive. Otherwise what, it's a sort of mind-fraud?
Personally I do like YouTube Music, due to all the user-uploaded content that isn’t available on other platforms.
People who choose that without much thought - because it's barely an expense for them - are definitely tending towards "higher net worth" nationally, let alone globally. A lot of those people just don't realize it, because the entire point of seeking that kind of status is so that they can enter a socioeconomic bubble and not have to care about annoyances (like advertising).
If someone gives you an ad filled magazine, you can rip out the ad pages and throw them in the trash, leaving only the articles you actually want to read. Same principle applies here. If some random person on the street gives you a propaganda pamphlet, are you obligated to read it just because some businessman paid for it? Of course not.