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Content, monetization, and ubiquity.
Content: PT skews heavily into Linux and Linux adjacent topics. And that's fine, but when I say I watch more YT than regular TV, I'm not kidding. And its because of the diversity and variety of channels. Things like History Hit or Every Frame a Painting, and silly shit like Red Letter Media. YouTube isn't just "let's plays" and game streaming. So Peertube can't be "Just Linux"
Monetization: Creators have to get paid. That's just reality. It would be a fine world if everyone could spend hours doing their passion for free and not have to worry about deeding themselves. If you want #1, you need a certain amount if full time creators, and for that they need to get paid.
Ubiquity: Watching more YouTube than regular TV, I don't want to sit in front of my computer to do it. We need to be able to access it from smart TVs, ROKU sticks, etc... And not just a port of the website that requires a mouse and keyboard, but something optimized to work with smart TV remote controls.
The issue with the Fediverse (not that I don't love the fediverse, I do) is that all of those three things require large scale framework and organisational planning; which is the antithesis to what the Fediverse is all about.
Tl;Dr -- Large scale success of PeerTube as a thing is largely impossible without abandoning the concept of federation itself.
Why does PT have to be a place that creators get paid? Yes, that is essential if we want peertube to TAKE OVER THE WORLD. But what is wrong with providing a platform that ISN'T driven by content revenue along side YouTube? Those creators have needs that aren't being catered to elsewhere.
Ok, show us all the free PT content you've made without getting paid. What's that, you can't pay your rent with PeerTube views, you need a real job you say? Well that's why there's no content, creators need to eat too.
I mean it's not hard to find my PT server with my content on it. And yeah, NO ONE IS EVERY GOING TO PAY TO SEE MY CONTENT. That's kind of my point. There's millions of people producing content THAT IS NOT COMMERCIALLY VIABLE, and they do this even though it doesn't pay the rent. Like, I honestly don't even know what your point is except to deny reality.
He's answering the question of why it's not more popular. And he's right.