I didn't say that they remove every single piece of problem content, or that they remove every single thing a user flags. But I do believe that they go out of their way to do so. They make way too much money to do otherwise.
Also, they may (I hope) be a better company now than in the past, as your example seems to show (you indicate that they started requiring verification for uploaded videos). Maybe they grew up, or maybe they just realized that their revenue (or entire business) would be compromised unless they took serious, ongoing action.
In any case - Aylo/PH must certainly be better than many of the alternatives that are based in very permissive jurisdictions and just don't care. Those are the sites people in these Southern states are going to end up on now.
I'm sorry that in your case they failed though.