Federation is the Worst of all Worlds. It's not. One might argue that the article is really an advertisement for an at-best tangentially related product and that drumming up support for it necessitated changing the subject of the conversation - but I'm going to take its claims at face value and argue against them as they were argued.
After getting kicked off Youtube, the Blender foundation is now experimenting with hosting their own videos on a peer-to-peer network. The reason for the ban seems to be that Blender didn't enable ads on their content, so hosting their content for "free" was a money-losing proposition for Youtube. While it is debatable whether Youtube actually loses money by hosting popular videos ad free (considering how they still show ads on the video page itself, profit from the network effect and viewer retention that comes with the video, and are able to inject heavily monetized videos into the viewer's follow-up queue) or whether Youtube should maybe just force ads on every creator instead of just banning their channel out of the blue one day, none of these address the root problem.