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It's a big grey area of what's hate and what's not but let me tell you there are certain videos (content) on YouTube which is by any stretch of imagination : hate or racist. This content should definitely be taken down. How to detect such content is matter of active research in the US and at India.

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I absolutely disagree for exactly the reason you mention in your first sentence. It is a big grey area. There is no clear line between what is acceptable and what is not. Rather than censor, we should act like adults and refuse to listen to racists. It is not the government's role to decide that for us. When they do, they almost always get it wrong somehow and often corrupt the process to their own benefit just like is described in this article.

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