What counts as "decent recommendations" is probably pretty variable. I found Spotify's recommendations were awful for me and YT Music did far better, but I don't think thats the typical experience.
It does definitely tick all those boxes, though. Been using it for a while and it's done the job.
I originally tried YTM when Fi offered a free Premium trial, and it's been pretty good in that regard for me. I don't necessarily love everything in the Discover Mix, but I rarely ever skip tracks in it because they're usually pretty good at finding things similar to my searches. It also helps that YTM is bundled with Premium, because I don't think I'd be willing to pay $14/month for either one, but together I get no ads on YouTube and a decent music service.
That said, if audio quality is important, just use Deezer or Tidal. YTM is usually decent in terms of audio quality, but I've definitely found some tracks that sounded like they were recorded by holding a phone speaker to a gaming headset mic.