YouTube shorts was the dumbest fucking idea. They have a niche: long-form (as in >1min) video content. They are dominant in that niche. Then they saw TikTok was popular and dominating the short-form video scene, and their response was... "we should switch to making more short form". WTF?! And on top of that, they've diverted resources away from their main product (longer videos) as the article says. It just seems like such a catastrophic unforced error.
YouTube have such a stranglehold on the >1m market, that's why they can afford to stagnate in that area and look into other markets. They don't have to fear a competitor threatening their core market any time soon.