Not the author, but did a LOT of research on this during my time at Disney while working on Disney+ prior to its launch.

This is, effectively, no different than a carousel of algorithm-recommended content. However, UX studies have found users reluctant to watch something recommended to them. It requires making an affirmative decision on time investment. Most people have the experience of a friend recommending a movie or book and still being reluctant to dive in.

The problem is very similar to dating apps, if you think about it. This is why Tinder's innovation on "swipe left/right" took off the way it did. In UX terms it's better to drop users into something and make the cognitive effort be choosing to get out of it rather than choosing to get into it. It's a big part of why TikTok works.

The reason this isn't more common in video apps has more to do with UX norms at this point. Another important thing I learned about streaming at Disney was that no one really cares how innovative the browsing experience is. They just want to watch Frozen. They're used to carousels now, and they're easy to program. This, I think, speaks more to your sensibilities.

I guess it's really not for me though. First thing I do is turn autoplay off, and I'd refuse to use a service that doesn't give me that option. OTOH, I do sometimes find it fun to hunt for good stuff among the recommendations.

Tuning into a channel in channel surfing mode also lets you hop in mid story which is it's own experience.