Yeah, I'm not a big industry player but I'm not exactly enamored with this kind of thing. One question would be does Youtube-dl still provide compensation to the artists/label/publisher/etc in the same format as a stream? If not, then it's genuinely circumventing the (admittedly limited) tracking and compensation structure YouTube has set up. That...probably won't work out very well in the long run.
Restated: no. Monetization depends on the ads. Using such a tool is equivalent to using an ad blocker. If you're comfortable using an ad blocker, you're not doing much different here.
