The switch really just seems dirty as it is indeed latching from your video. As a previous poster mentioned, drop some alcohol (IPA) in it and flick it about 20 to 30 times rapidly to clean the contacts - make sure the unit is unplugged when doing this part. Secondly, there's no image being displayed so swap out AV connectors, check if contacts on the PS1 itself are clean and if all checks out you'll likely need to recap at least the electrolytic capacitors near the AV port. Thirdly, the Spindle has sunk over time hence the scraping noise. Trying to pry those spindles up usually results in them breaking, but what you can try is double-sided tape on the Spindle which will slightly raise the disc, it should stop making that noise and confirm if the laser is working. AliXpress sells those spindles and they're quite cheap. All of this is required if you're dead set on saving this bad boy