Your argument makes sense, and I share your feelings on an emotional level, but at this point, the whole argument can be reduced to "sharing video files streamed from google drive is an equivalent of hosting a video on youtube, so the same rules apply", and that's hard to beat.
If you want to store whatever material you want for personal consumption, you are welcome to. But if you enable sharing, that's when all those extra rules start applying, because you are effectively turning it into a personal youtube that is still hosted by google, and DMCA strikes and other stuff will apply just the same.
Similarly, you can make backup copies of a DVD movie for yourself by burning them onto writeable DVDs. The legality of it is dubious due to copyright law being plain awful at times, but you won't get prosecuted for that if you truly had it only for personal backup reasons. The second you start distributing those DVDs in massive amounts to people, you start inviting a pretty legal trouble to your doorstep.
Mind you, I absolutely disagree with the ban of both the historical footage, as well as the whole google account just because of that footage. However, I do believe that making video public via a shareable link or otherwise puts it in the territory where content rules similar to youtube might get reasonably applied.