If rolled out widely, this would make web browsers and third-party YouTube clients without a DRM license unusable for YouTube playback, download, etc. This would include almost all open-source web browsers and almost all third-party YouTube clients. Archive link to reddit post about this
But now the more edgy videos are gone and the watch time that is attached to them. If you want to watch something that is too spicy for YT, you have to do so somewhere else. The fragmentation has already started.