I also found myself making sweeping, cynical statement like "Well, this is how grassroots content production ends!", and I'm quite glad to have been proven wrong. From an idealistic standpoint, YouTube should have immediately pulled the original video and sent the Fine Bros. a message along the lines of "Hi. You can't do that, morons." But this isn't an idealist's world, and their channel brings a lot of traffic (hurr durr, simple logic, sorry). I'd like to think that if people find a way to ruin YouTube, another grassroots video hosting medium that refuses to enforce outlandish copyright claims would emerge, but I'm not sure how well that would work, in practice. The process of upheaval and reestablishment would at the very least take some time.