Too much $ to host videos from the sound of it. Too many instances vanish. Strict upload limits means it's more suitable as a gif meme host for your element memes that you don't care about than an actual YouTube alternative.
I don't think peertube could ever be a replacement to youtube, at least not to the "new" youtube which main goal is commercial content creation. Peertube cannot pay the content creators the way youtube does, because, for ones, it doesn't make any money from adds nor is owned by a corporation.
What peertube can aim to, is to be like the older youtube/dailymotion/etc were people posted videos of the things they liked, without monetisation or influencers. Because it will never fully attract influencers.
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