It’s an open source front end to youtube, yes. So no ads on the sidebar, no bullshit about logging in, no garbage algorithm to be harassed by.
And no commercials yet. If YT streams the ads and invidious doesn’t block them and adblocker doesn’t block them and PiHole doesn’t block them, I will not watch them.
It still goes to active user counts though. There will still be a footprint left by any view and that can be marketed as "we have X million users daily!"
Again, the point is that those accounts are still users that can be pointed out as such for all to see. Remember: a youtube account is just a Google account.
One could argue that youtube is a highly effective loss leader - people get into the Google ecosystem because of making an account to subscribe to their favorite content creators. Now Google has data they can sell, and metrics for advertisers to go "I see 18-30 year old white guys who watch things about X are likely to respond positively to things about Y." The algorithm, even without advertisements, is constantly building a profile of every user.