If they had a premium version for something like a third of the prince I would gladly pay for it. I don't care about Youtube music, offline mode or background playing. I just want to get rid of the ads - and their current model doesn't offer anything that does only that for less money.
I dont think that this would be any cheaper, (maybe excluding yt music would cost them little less? idk) but this price is mostly what they think removing ads is worth and rest is like a free bonus.
In my country yt premium costs almost like Spotify premium and for me it doesn't bring enough value in comparison
That's because it was intended to show the music industry it wouldn't canibalise Spotify subs so Google could get cheaper music licensing, and it showed the opposite. So now ad free YouTube wil never be cheaper than Spotify/Apple Music et al. YouTube Music is bundled because it's free.