That would kill the small labels, but not the big labels because they have a way to connect with their customers that google does not control, namely radio.

That said, I agree with the principle of what you're saying. Google put a LOT of things in place on youtube specifically so the large publishers wouldn't go after them, and that has extended to everything else.

Google absolutely has a large responsibility in this, but it's also true they're not the only party with responsibility for it.