Edit:
Panel 3: PiHole + uBlock Origin
Panel 4: PiHole + uBlock Origin and recurring donations to pay creators
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uBlock has direct access to the DOM and so can modify what the browser renders. For example, YouTube ads are hosted on the same domains as their videos and so PiHole cannot block them, but uBlock can.
I don’t understand why tho, what is it that let’s unblock distinguish ad video vs real video?
Unlock can read the code being sent to your browser and act accordingly. It’s much more granular.
Pihole can only see you’re going to YouTube.com. It cannot see what YouTube is sending you.