Vinegar is a Safari extension that replaces the YouTube player with a minimal HTML video tag.
It removes ads, restores picture-in-picture, and keeps videos playing in the background.
Note: The "can read information from webpages" text in the permission section is just unfortunate wording. Vinegar needs access to the web page to find the YouTube player and replace it. It's not doing anything creepy!
(By the way, check out Vinegar's companion app, Baking Soda. It's basically a less powerful version of Vinegar, but it works on all websites other than YouTube.)
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Auto start playing feature Great application. Works great on the iPhone, iPad and Macbook. One small inconvenience is that you need to push the start button when the page is loaded for the video to start playing. An option that automatically starts the video would be perfect. There is also a little delay before the video starts to play, but there is no ads or tracking. Which is perfect.