I agree that it's reasonable to ban "calls to violence", but the "overt racism " part is extremely subjective. Why is racism worse than hacking? I, based on my own principles, think racism is 'worse' than hacking, but most people's principles are completely different from mine, and I think a considerable part of the population thinks that hacking is morally "worse" than racism, even if they don't realize that they think that.
Almost everyone agrees that there should be some room for objectionable and offensive content, but 'the worst' content must be censored and criminalised. There is very little consensus on where to draw the line. Banning hacking videos (if that's an accurate description of what occurs in practice) crosses the line for me, but at the same time, hackers don't need YouTube to share videos.
For example, Cape Town puts on a minstrel festival every year[1]. Should YouTube ban videos of it? It is surely intensely racist and offensive from an American perspective, yet it is also a culturally significant event in Cape Town and it seems unreasonable to apply American/Anglo definitions of racism to South Africans thousands of miles away who see the world from a different perspective.
I don't think YouTube could exist without banning certain kinds of content. But at the same time, I wish they do so lightly. Because homogeneity of thought is far more dangerous to a society than any video.