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YouTube will soon require watch history to be enabled to show video suggestions
(support.google.com)
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Their algorithm sucks and I'm perfectly happy minimizing my exposure to it, but the whole premise behind video suggestions is that it's based on what you like. You could try to replicate it with subscription lists instead, but the bottom line is the feature as it is doesn't really work without knowing what you watch.
They have better information than what I watch: what I click like/dislike on. I've watched a number of videos someone recommended that I hate, videos I click on accidentally. Sometimes I don't watch all the way through, but sometimes I'm not sure until the end that it was a waste of my time.
It was years ago, but my feed got much better when I disabled watch history.