"If you can find it" ... that's the crucial point I suppose ... but without a discovery algorithm, interesting creators, and a VAST content archive, it can hardly be called an "alternative" for YouTube.
When I was looking into it I found the best use case was to use it as a self-hosted video archive to replace/extend my Vimeo. At least at that point, all instances that were remotely interesting were not taking any users, and the generic ones seemed to be very far away from what I'm doing content-wise.
And I guess as long as that's the case, and you have no ways to monetize content nor any significant reach due to the federated fragmentation, I don't think it's an interesting software/federated platform for creators ...