No, it can't be monetized.
Actually, you CAN, it's just significantly less than a channel not made for kids because the ads are not targeted. That was pretty much the whole point of COPPA, it was about NOT gathering personal data of the user, so instead of having targeted ads, the ads were going to be generic ads.
If not - what benefit is there to putting the episodes up on YouTube. I mean how do you get a return?
The whole point is to start a real business that makes money outside YouTube.
I personally wouldn't have worded it like this. But just like any kids focused entertainment, the goal is to monetise in other ways, like merchandise etc, but if you're a kids themed channel, that may get tricky because there will be legislation about marketing towards kids (even though you're actually marketing towards PARENTS, because it's the PARENTS with the money.
The point in having your videos on YouTube, if you can't make money out of it, is to build and establish your brand with content, and then use business practices to make revenue outside of ads, like with sponsor spots and other promotions. Just like Ryans Toy Reviews channel etc.
The topic has been covered a lot in business niches because there's been a lot of kids channels who's production budget is effected by COPPA, but just like any business venture, if you're going to treat it as a business, you have to adapt to change, just like production companies had to do so 20 years ago before YouTube was a thing and content was still under legislation and labelling and all that fun legal stuff.