I’m using this all the time myself. There is no login to YouTube required and it supports adding subscriptions and doing everything important you can do on YouTube.
And the best part is no ads whatsoever.
If I want to support the creator, I would rather donate directly or subscribe to the person’s Patreon. YT Premium just gives no extra features for Youtube itself so could not justify paying.
For some reason I doubt that’s a common practice with people hellbent on not seeing ads and not paying for the service.
Color me surprised if I’m wrong about that.
I use youtube music everyday as well as downloading videos on my phone to play without wifi. So maybe I do use some premium features, which may make me biased.
I don’t subscribe to anyone, but have donated to the authors I like, just as I did to the FOSS projects I use. One blogger even has a site where you can tie your donation to a specific video of his.
And for Youtube Music - RiMusic does just what you described but does not require a Google account or a recurring payment.