Have you actually used this? Does it work??

Yes it's great. Recommended 👌

The problem with using this is that you can filter out shit content just by avoiding anyone who uses that sort of thumbnail (for the most part)

Yeah I just click the "don't show this channel" thing for those. This one is good too. Cuts out sponsor segments and other crap from videos.

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SponsorBlock is a crowdsourced browser extension to skip sponsor segments in YouTube videos.