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You are severely missing what YouTube is for. The vast majority of people, probably significantly more than 99%, just go there to watch stuff. Very few ever make videos.
So yes, for almost everyone, content just magically appears there. Because of how many people use the site, that still means a very large (absolute) number of people make very diverse content. YouTube is excellent in figuring out what I want to see. Think of it like TV with the ability to comment, and having more variety and being on-demand and custom-tailored to my personal taste and interest. If there's nothing I like on tv, I turn off the tv. I don't start a broadcasting company.
In other words: me making content I want to watch doesn't solve me wanting to watch something, and if I made it I already know it and it isn't for me.
What makes YouTube worth visiting isn't the site itself or how it was coded. But for the people that are on it. That makes it so hard if not impossible for alternatives to ever appear and be viable. You need the people for the site to be good, but people don't come unless the site is good. The is no likely solution to this, not now, not soon, maybe not ever.