have you seen how in the UK (at least) most videos on youtube have been blocked. Its down to copyright payments with youtube, as far as I read, being charged what they felt was well over the 'going rate' so what we have now is the 'world' wide web gettin blocked in certain parts of the world. Its not even a censorship issue..... its just a money issue.
really though, does youtube drain the music industry of cash or is it more likely to generate cash as bands / songs have far more exposure than anywhere else?

is it not really short sighted, Ive got into loads of bands simply from cruising through youtube listening to stuff I never would hear normally.
They tried to stop the guitar tab sites, they tried to shut down sites which give the lyrics to songs will they be running around the clubs to shut down tribute bands? will you face a huge fine if you are caught playing a song to more than 3 people?

and at the end of the day you can always use firefox and download an addon which chages your IP to a different location and watch the damn videos anyway!!