First, this is about more than codecs and quality. The article notes that Google wants data on users that other channels don't get. Hardware may be part of it,

First, this is about more than codecs and quality. The article notes that Google wants data on users that other channels don't get. Hardware may be part of it, though. Codecs also affect bandwidth. Videos in newer codecs often have a smaller file size which is less bandwidth to stream and smaller files to keep on their edge nodes. At the scale of Google and Netflix this is substantial and plays into their costs. Google, via YouTube, has a history of only wanting to support the latest systems. I've had older devices where the YouTube app has gone away. This is a bit of forced obsolescence to push people to buy newer stuff. Not because they need it but for reasons outside the end users needs.