I'm thinking that Dailymotion will now become the dominant force in the video wars. It's not many businesses that can turn their backs on 95% of their revenue and survive. RIP Youtube. :'(
Well, there is no doubt that there is no real competition now, but a Youtube monopoly. I use Dailymotion, too, but they have to add some functions such as custom thumbnails and stuff like that.
Also, they should try to make more deals with famous media outlets to get views over from Youtube. The problem with more competition will be a more fragmented viewer base.
As far as the monetization is concerned, I can perfectly understand your feelings. On the other hand I also see that Youtube doesn't owe us anything. They give us their servers for free, so they can do what they want. Youtube is not a public entity.
With Vimeo, I actually have to pay 50$ a year to upload, but you actually get customer service.
As I said, I'm more concerned that my views go down, if Youtube favors content with ads.