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Yes, that is an incredibly annoying function. Also if you want to skip forward through a video it seems to need to show you an ad every time you skip past where the ad would have been. Not to mention the sheer frequency of adverts in some videos. GCN videos are becoming borderline unwatchable.
I read somewhere (on here?) from someone working in product development (for laundry detergent or some such) that the whole process of releasing "new and improved" versions of a product was really just about seeing how much of the active ingredient they could remove before the product became unusable (or obviously terrible value for money). YouTube currently has that vibe, they just seem to want to fit as many adverts of as great a length of possible into every video and will only stop when people actually start jumping ship en masse.
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ffm
I think, at least from my experience, youtube has started to do a thing as well now where it will play an ad at the most popular part of a video or if there's a timestamp someone has pointed out in the comments that I suspect is clicked a lot.
All this means that either an interesting/funny part of a video is ruined because just as the the thing is about to happen after the build up, there's an advert that cuts in. Or if it's something with a load of fluff at the start of the video you end up getting an ad at the start, scrubbing to the bit of the video that is actually of use, and an ad usually pops straight back up again.