And then you proceed to defend that anyway.
Any webserver will be happy to serve up .mp4 content. There are free players (JWPlayer for instance) and you are entirely free to serve up whatever you want from your own hosted service.
That capricious decision can be appealed, you can take Youtube to court if you feel they have wronged you.
> Why would you be surprised that someone would be upset about a capricious decision, which cannot be appealed, suddenly taking away the money?
Because it never was theirs in the first place. The contract which you engage in when you sign up with Youtube or any other user created content service is pretty clear in that respect: the service can be withheld at the discretion of the company. If you can't live with those terms don't host your content there.