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I think ts great! Sound quality is as good or better. Ive always discovered new music more from yt than Spotify personally so it has about 10+ years of my listening habits to go on and it dies a good job finding new stuff I like
While downloading is technically locked for free {even revanced) users ther are appa like newpipe or ytdlp that you can use to rip the audio in various formats. .
For organizing large collections and playlists I think both Spotify and YouTube are not really good but yt music on the desktop/webui is great where Spotify has a better interface for their mobile app. This might be more of a me problem though because I prefer organizing my collection offline using something like ex falso and musicbrains picard.
In terms of music library size they are pretty much equal, I used soundiiz ($5 service) to export and sync my library from spotify to yt and it got most everything, playlists included.
I think overall it might take some adjusting to if you’re very used to Spotify and its UI but its a very suitable replacement.
Nginx was the easiest to setup for me at the time and I’ve no reason to fix what isn’t broken.