The problem is that new YouTubers are facing several problems. 1) search results don't favour new tubers. I and plenty of other smaller channels put up reviews of Fenty for example, but we aren't being pulled in results until after the Jefree Stars of youtube. The more subscribers and views your pulling, the higher you are in search results. 2) A lot of new tubers get lost in the shuffle because either they try to act like "gurus" and people don't need more of the same, OR (and this is what sucks) people don't want CHANGE. if you don't fit the idea of what a guru should be, or if you do something unconventional, you either get really loyal subscribers, or you get dismissed.

So basically, it's not that there isn't room. It's that alot of people simply have a hard time pushing through with longevity to make it out of being smaller channels because saturation is SO HIGH.

I think there is totally a market for even more content creators (surely I'm not the only one sick of watching the same 10 people do the same thing, right?) But becoming visible on YouTube now is so much harder than it was even 4 or 5 years ago, much less 7 or 8 years ago when competition was nonexistent.