The DMCA is absolutely not copyright reform. It was brought to us by the same mindset that brought us the Bono act. It's a bad piece of legislation that should have been replaced 20 years ago.
> What I do not understand is why that process is not being followed here. Why is Google not insisting that the big media companies follow the law and use the process laid out by the DCMA?
Because the DMCA and copyright in general proved to be a massive hindrance in actually having Youtube be workable, so they made their own system which functionally bypasses it, by giving in to the corps. The corps can either misuse the DMCA and make life hell for Youtube, or they can get in on the system with Youtube and make some cash on the side. There is no middle ground where the DMCA isn't misused, Youtube gets to exist and the corps don't get paid.