I would argue that this will be far more obnoxious than television commercials. YouTube already places ads directly in the midst of sentences or even words. At least television usually cut to commercial after the line was finished.
This will annoy me to the point of dropping YouTube altogether.
I don't think the outrage is so much about the existence of the ads, but rather the intentionally obnoxious placement of such, but go off in defense of billion dollar companies king.