Hmm, well I think the problem with Youtube has largely been their willingness to engage in censorship and enforce copyright claims. The internet is supposed to be a bastion of free communication, and a video sharing site like this was a big part of what helped with the information freedom of the internet.
Now you might be saying "But Therumancer, aren't you anti-pirate?" and the answer is yes, but the thing is that on Youtube the copyright claims tend to be enforced on things like someone making videos for their favorite songs using footage from their favorite TV shows and such... pretty much fan activity, of exactly the sort that copyright protections shouldn't apply to. When Youtube nails a music video that was put on on TV for years, or nails someone's video because they decided to combine say "Final Fantasy" with "Nightwish" music, they are representing everything that The Internet is supposed to get away from.
Likewise I don't care for their content standards for things that are sexy/racist/etc... I believe on a site like Youtube you should be able to put anything up that you want to, without any real limitation or regulation. If your afraid of being offended, you don't belong on a video sharing site browing for random things.
Just like the run of humanity you should expect any major internet site to be 99% banality 1% real gems.
Of course understand that I'm one of those "insane idealists" when it comes to these kinds of things. Despite being a conservative in general, I have some fairly liberal/anti-societal views. One of those views is in standing up to society when it goes wrong. See, in my mind when a site like Youtube backs down due to the threat of lawyers it's absolutly pathetic. When dealing with principles like free speech, things like that should be ignored, and the guys running the sites/spreading the information, should force the authorities to come and arrest them, resisting with armed force if nessicary. See, when your willing to go down shooting it draws attention to the overall issue, and causes society to look at the issues and ponder if it was really worth sending the SWAT team into a firefight to kill people in order to set down some internet servers that were broadcasting music freely availible on MTV decades ago (or whatever). When you back down to laweyers it sends a message to society about legitimacy, and just encourages more legal punkhammering.
Some call me insane, but the bottom line is I tend to be judgemental when people don't stand up for certain principles, and back down in places where an issue should be fought to the most extreme levels.