If it wants to host anything legal, liveleak-style - then that's fine.
But if it decides to remove whatever video it wants then that also should be fine.
One where there are multiple mutually compatible YouTube providers. If your current provider has a weird content policy, then you move. If all providers have a policy you don't like, then either you start your own, or you happen to be at the fringe of society.
People so far at the fringe that they cannot gather momentum (especially on the internet) are either clearly wrong, or illegal. The second option still gives avenues for censorship. But hopefully democratic principles keep that under control.