Unless I am misunderstanding this new policy, it seems very terrible indeed.
According to YouTube:
Here is a summary of the changes:
- Facial recognition restrictions. The Terms of Service already stated that you cannot collect any information that might identify a person without their permission. While this has always included facial recognition information, the new Terms make that explicitly clear.
- YouTube’s right to monetize. We’re gradually starting to serve ads on a limited set of brand-safe videos on channels not in the YouTube Partner Program or not under a monetizing agreement. There won’t be revenue share from these ads, but Creators can still apply for the YouTube Partner Program once they reach the eligibility criteria, which remain unchanged.
- Royalty payments and tax withholding. If you are entitled to receive payments from YouTube through any other agreement between yourself and YouTube (for example, through the YouTube Partner Program), all such payments will be treated as royalties starting June 1, 2021. Google will withhold taxes from such payments as required by law.