Google could kill YouTube Vanced for good

They've already tried to kill it like a year or two ago with their last major API changes. This is just another attempt at it.

Google may be wealthy, they may be in control. However, they're still limited by how the technology fundamentally works. You can only secure something so much before you inadvertently damage your own product's functionality by restricting its access too aggressively.

Another thing to remember, YouTube is used by literal billions of people across the entire planet from virtually every notable OS capable of doing so. Locking it down so that only one type of app and web browser can access it would cause them to lose millions of eyeballs and ears, i.e. hundreds of millions of dollars in revenue over time. It'd have the exact opposite effect of what they're trying to do (increase ad profits).

Technically they could, but the effort and checks required to do so would be massive and very disruptive to android in general. They tried something kinda like it with SafetyNet, and it's so trivial to bypass it's being phased out.
Turns out root detection is kinda easy to circumvent if you have, you know, root access.

The effort is so small that they decide not to?

Yes you know your stuff

The moment they decide to put even a small amount of effort towards shutting down ReVanced or the others, they’re as good as dead.

Possible. Now what it is missing is the part that should convince the ReVanced user to accept the new situation (they must bear the Ads) instead of stopping to use the service. Remember, Google if fighting against people that are already taking active actions against them, not the Average Joe user.

And in all this, Google cannot risk to put too many hops in the path of the Average Joe users as there is the risk that the common user consider that, all in all, the service no more worth the headache to use it.

You do know that when google tells you you're a valued user and customer, they don't mean it, right ?