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It was inevitable (and is arguably the “logical” extension of sponsor segments).
As for what it will do to timestamps: The same thing it does to timestamps in podcasts. Some podcast players have a special way to tag the timestamp to adjust with the inserted ads but NOBODY hosts with those. So they are rendered useless.
On the youtube side? They could potentially be auto-adjusted because youtube will know how many ads were inserted . But considering the goal of this is to serve ads…
Video length is incredibly important to The Algorithm and a LOT of content creators time their videos to the second. Taking away control of that (even if the end result ins the exact same length) is going to ruffle a lot of feathers and lead to a lot of people who want to “be a champion for the viewers who should like, comment, and subscribe and use my referral code for war thunder” as a result.