Digital releases make sense for indie developers like myself, because we simply do not have the money to pay to have discs properly pressed/manufactured, booklets/cases mass produced, mass marketing etc etc. So that being said, indie games need the option for digital release (usually the only option). Major first party and AAA title's don't necessarily need that as the developers have plenty of money for the physical releases. IMO if a first party or AAA title has a digital offering, it should be available for a fraction of the cost of the physical version. It only makes sense. Cut your production costs down, lower the price.
Anyways back on topic, people should just move onto to another video hosting service if youtube is going to give in to these sorts of demands. In many countries this kind of censorship is actually unlawful.