The big difference between US and EU privacy laws and the corresponding personality rights is that, in most EU countries, every individual has the rights to their own image. You can't just go ahead, take their picture or video and make it publicly available without their consent. I guess most people see this as an important part of their privacy rights.
There are of course exceptions for public figures and events, and there's an interesting debate going on with lawsuit after lawsuit trying to balance freedom of the press with personality rights. At least in some cases it is hard to see how the benefit of the public seeing a politician in swim wear outweighs his or her rights to privacy.
This hasn't stopped sites Xing, StudiVZ or Hyves from becoming very popular sites and building successful businesses.
There's also an ongoing debate in Germany and other EU countries, to what extent UGC-sites are liable for their content and how much they should police it. Majority opinion: not liable, police some, react quickly to take-down notices (though your mileage may vary from court to court).
As for the case here, the main blame is clearly on the guys who shot and submitted the video. The question is whether Google has reacted appropriately to the take-down request and whether it has tried hard enough to keep the vid off of youtube (keeping an eye on the inevitable wave of re-uploads).