YouTube was supposed to be a video sharing site, Google is a business that has to make money,

Right, and by not putting advertisements on tons of lower viewcount content, they are not making money on it. Instead, they are hosting this low view count content for free with zero ways to recoup costs ever.

Youtube will never monetize a video where the original content creator doesn't get paid. So this change doesn't keep more money in their pockets either.

And the monetization thing is just kinda an easy thing people can bitch about imo. The bigger issue is you lose partner features which can be a massive boon as a creator. This being access to scheduled uploads, custom thumbnails, end screens, cards, and videos longer than 15 minutes.

Those partner features are massively more important than the $5/month maximum you'll be getting for any creator on youtube.