It's only "too big to fix" because Youtube insists on fixing it centrally. They could fix it by delegating responsibility to creators, and implementing some sort of "user-rank" to avoid moderating every single bit of content via paid employees.

If Google were serious enough about the issue, there's an opportunity here. If they created an effective enough, and flexible enough, distributed 'content moderation' back-end, they could probably offer it as a service to other businesses, too.