Could for the life not understand back then why Youtube and this existed at the same time.

It make sense - move all consumer content under the Youtube brand - hopefully the teams working on these products don't have the same "I got to start a new team to launch another shitty duplicated product in order for top management to notice and promote us.

The folks working on Youtube are doing great work even if most Googlers higher up might think it is so mundane and boring - it pays the bills.