Should I use more, shorter tags, or fewer, longer ones?

My tags are limited to 500 characters. Everyone who coaches you on how to do SEO suggests finding search terms that have high search volume and low competition. That certainly makes perfect sense. But how exactly should you optimize for those search terms?

When I do searches for phrases with high search volume, I've noticed something rather bizzare. The top search results usually tend to have about thirty to forty tags that are only one word each, even if they are designed to be placed together.

For example, using Tubebuddy, I noticed that the phrases "let's play dark souls remastered blind" and "dark souls remastered blind" both have search volumes in the orange. A search for both phrases yield playlist by a guy named "Living Sun" as the top search result. This guy has only 582 subscribers, so he sure as hell isn't dominating the search results by snowball effect alone. I also notice that he has 32 tags, all of which are only a single word. "Dark" and "Souls" are separate tags, despite it being the two words together that people are searching for.

This is only one example. There are plenty more where that came from.

What do you guys think? What's the better strategy for optimizing your tags?

Honestly, I feel like the youtube tags benefit my videos in NO way shape or form.
 
For example - I have a gaming channel and this is how I tag my videos:

If I'm doing a gameplay walkthrough of a game I'll use a title like "Unsung Warriors Gameplay Walkthrough (Indie Adventure Game), I'll then break the title down into different tags and I'll sometimes include tags depending where I got the game from:
  • Unsung Warriors, Unsung Warriors game, Unsung Warriors indie game, Unsung Warriors Gameplay Walkthrough, Gameplay Walkthrough, Indie Game, Indie Adventure Game, Unsung Warriors Itch Kickstarter, Unsung Warriors Itch
I hope this gives you a better idea :)
 
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