Youtube should be allowed to 'remove' copyrighted content
They are. The problem is that a large part of the copyrighted material on YouTube, was put there by copyright holders (trailers from videogames, music videos, movie trailers, etc.) because YouTube is one of the more popular websites in the world, the copyright holders would be stupid not to have their content, available there in one form or another. It's free advertising. The problem is they want to have their cake and eat it.