My interpretation is just that if an uploader turns on monetization for a video, then the money they make for that video can come from both ads and from the peo

My interpretation is just that if an uploader turns on monetization for a video, then the money they make for that video can come from both ads and from the people with paid subscriptions (i.e., you can't have a video which doesn't participate in the new program and that just continues to show everyone ads, because then the paid subscribers would not be able to skip ads for that video, even though that's what their subscription is supposed to do). This has nothing to do with uploading videos for free that can be watched for free.