Yes even meta noticed that the qualityof videos on peertube is increased, they're illegally scraping all the content for training their closed source for-profit ai video generator

It's not a matter of "getting better". It's a matter of having the bandwidth. You can't serve a video to ten of thousands of people from one or two servers. And you can't do it with P2P at that scale either. There's nothing technical to do about that; it's basically a physic limitation. To address that you'd have to publish your video in dozens or hundreds of servers beforehand, and the system have to handle load balancing and source lookup efficiently. Basically, work as a full CDN. And that's expensive to do. The reason youtube can do that is not that they have wonderful, almost magical software running on their servers, it's that they have a lot of them.

And, sure, it doesn't apply to most people. Which is irrelevant; most people are not what are driving the masses. One large enough youtuber going peertube would give it more visibility than thousands of individual people. That's the reason people are still using youtube; because people go where the content they want is.