Seems like part of the problem is that YouTube revenue is tied together to revenue from AdSense for websites, even though the two services are affected by click fraud differently. Now Google is still making money from the author's popular YouTube videos, and he won't see a penny.

The "correct" response would be to pull all his videos from YouTube, move them to a competing service, and write Google to let them know why. Of course, this would unfortunately mean traffic would drop close to zero... (what's the closest competitor to YouTube right now?)