Works well enough that it’s still one of the major video hosting platforms.
The part you miss is “you sell” part. Unlike youtube, where it solves both monetization and content delivery for you, Vimeo, AFAIK, doesn’t do any monetization and focuses enterely on content delivery. You pay for the service, and how you monetize the content is entirely up to you. May be the ad deal with NORD SHADOW MANSCAPED, may be donations. Or, the video may be promoting your own business, which seems to be the most common use case - as a business you don’t want a competitor’s ad on a video which purpose is to promote your own.