The ability to add Vimeo videos is pretty much a must-have feature for our University's needs. I'm not sure why this hasn't been made a priority as Vimeo is a major video provider. We have over 4000 lecture videos that are all hosted in Vimeo and having to manually download each of them in order to re-upload them to Canvas Studio is frustrating to say the least.
I remember this initially being on roadmap. I don't know why it was removed. Like many have stated, Vimeo has significant advantages over Youtube for many orgs and having this as an option would be a "killer feature".
I would love to see Vimeo added as an option for Studio. After all, it IS the platform used for all of the Canvas video guides! This would be useful for applying Studio in our Canvas trainings for faculty and students.
Vimeo is another source we want to add to Studio very soon - the team is actually working on this already and once we overcome all the little impediments, it will be supported the exact same way as YouTube now. Please stay tuned!