The thing is, youtube is becoming more and more complicated to use, because of how youtube loves combining its products together, like google plus. It becomes more difficult for people to actively use youtube. YouTube is shooting itself in the foot. In my mind, this is an example of the evolution of internet sharing sites. YouTube will keep falling, and it will eventually become overcome by smaller, third-party sites, like That Guy With The Glasses, that host videos from other sites, like Blip.tv.
That makes the most sense, for a couple of reasons. One big reason is it means only pre-approved people can post to the site. This would not only cut out people who absolutely suck and are just crowding up the site with garbage videos, but also copyrighted videos that could potentially cause a lawsuit, like uploading an episode of Family Guy. Also, this would make finding new people to watch easier. If I like the Nostalgia Critic, and want to find more people like him, I have TGWTG.com, a website filled with nothing but the best reviewers, who are in similar style.
As more of these websites arise, the older system of a website just allowing anything that they directly host, like YouTube, will die out. The only benefit of such a system is it makes random viral videos more possible, but in my mind it isn't worth the consistent traffic that you would get from having specialized content creators. Google is only hastening the process, and seeing how stubborn they are, I doubt they'll ever change this.