Do you have evidence to back that up? According to YouTube's Help Center, they do revoke Content ID access from those who abuse the system[0].
I'm not saying that Google won't kick small-time abusers out of the system, but the big players would have to do something really bad to get kicked out of the system.
First to upload to youtube does not mean owner. What if something was uploaded to vimeo, or to a person's own website, then someone steals it and uploads it to youtube. Does that give the thief the right to take down all other copies? Or what if something is CC licensed like Big Buck Bunny, does that give the first person to upload to youtube the right to stop all other people uploading to youtube?
https://www.youtube.com/watch?v=t7tA3NNKF0Q
The video paints Google and content ID in a very positive light.
If what you're saying is true, where does this video go wrong?