Really. I completely agree. It's great to give feedback to a company on their products and services, but to tell the company 'we want this back, too bad if you can't make money off it', is going a bit far.
He's gotta realize that if there is a market for the smaller channels, either YouTube will figure it out (maybe with his help), or some other company will serve the need.
If not, than maybe there just isn't a market with a viable business model to make it work.
He can't expect a company to keep loosing money just so he has a place to put his videos.