In the larger picture, it very much seems that Youtube's decision to stand firm on the DMCA takedown of the Mccain campaign videos was the right thing to do.
You speak as if they have a choice. If YouTube refuses to stand firm on the DMCA takedown they lose their safe-harbor. Which means YouTube is 100% liable for any copyright infringement happening on the site. Not something you want when users upload your content.
We need cases like this to show that certain bills simply violate our rights as Americans. Remember this?
