Playlists with other channel's videos? Good?

Highfalutin' Low Carb

Loving YTtalk
I've tried to search for this but not finding anything.

I read or heard somewhere that if you don't have a ton of videos that it can be good to create playlists with highly optimized titles related to your niche, and add relevant videos from other channels to those playlists. The thought being that, to YouTube's algorithm at least, creating a playlist is the same as uploading a video. It creates a unique video ID number just like a video. These playlists also keep your subscribers interested by showing them other videos related to the topic that you yourself have hand selected.

Anybody heard this or do this? Good idea? Bad idea? Thoughts?
 
Hmm...I've seen these on many other Youtuber's channels. Like "Best Fight Scenes," "Best Anime Music" and so on. To me they are okay and don't really hinder anything. I normally only find these types of playlists on channels that do not make any videos/content for the site.

For me it's just better to keep my favorite videos from other creators in the "Favorites" folder which you can take off private if you'd like.
So in my opinion I'm pretty neutral about it. I don't really see it as good or as bad.
 
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