How ethical is youtube in its dealings in the media industry?

Although Youtube has been such a big hit ever since its creation in 2006 , there remain several issues with the ethics in its dealings with the media industry. Albeit, majority of the videos found on youtube are homemade or are not under protection from copyright laws, the presence of disregard for intellectual property is undeniable. Certain people may abuse the somewhat community moderated system and upload movies and other types of intellectual material without consent from the copyright holders. In the article, it is mentioned that so long as youtube does a good job of quickly removing videos whenever copyright holders ask, youtube will not be held liable for copyright infringement. As a result of loopholes in such laws youtube then provides piracy a large amount of space to run rampant and cause serious damage to the entertainment industry. In addition to the question of youtube's ethics, copyright infringement is not the only problem. Youtube is run in such a way that there isn't a group of editors to monitor what is being uploaded. The videos uploaded on to youtube are not checked before they are allowed to appear on the site, hence the question of whether these videos are suitable for everyone to view. Because youtube is a new form of mass medium, almost anyone with a computer is able to access youtube and view its content and in this way children may be exposed to certain undesirable content(with reference to excessive violence, gore or sexual themes). The article mentioned that videos deemed unsuitable for the general public are flagged and later removed by Youtube, however the flaw in this system is that viewers have to view the content first before knowing whether to flag the videos or not in the first place. In the meantime, the video could already have been viewed by hundreds of people, some of which not mature enough to be exposed to such material. Thus i feel this is a very ineffective way of policing the system.