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Apollo had it's own parser for most content. If third party Lemmy apps also start bundling built in players for YouTube and other popular hosting services, you won't need Lemmy handling that.
I think video hosting would severely impact the storage needs for instance admins.
I hadn’t realized that video hosting on Reddit servers was a big thing. I have linked to videos I made on YouTube and I guess Reddit Enhancement Suite and Apollo made that look good.
So I suppose we need to wait and see how the clients evolve and if people start linking to more video content where appropriate, like in a community such as c/videos or c/unexpected.
It was a classic Reddit move.
Burn a brunch of money to implement a feature nobody asked for.
Make that feature worse than what you already have.
Burn more money maintaining that feature, as you now need to pay for more computing resources to support it.
Whine about not being profitable.