Hosting someone elses video content is always going to be risky business, and with Google now being the owner makes it a big target.
Whos responsible for the content is tricky. Why should google be treated any differently to metaupload.
Censoring video is difficult. Google can do more to please these countries, and if thats not enough, then (I do like Demaestro thinking, and) dont let these countries access youtube.