Google is an American company. Their "rules" are extremely embedded in a US culture. Unfortunately YouTube is a product that is consumed worldwide. Many of the regions where it has a dominant market share for web VoD do have cultural palates that are very different from the US. I feel Google should embrace their international position and be less biased in it's reasoning.
So, what is your suggestion here? Should they run with the most open interpretation (i.e. allow anything that is socially acceptable somewhere on earth) or most strict interpretation (i.e. limit stuff that might be offensive somewhere on earth)? Both approaches look rather impossible to me: the former would mean allowing stuff that might even be illegal in the U.S., the latter would mean that e.g. all videos showing…
It's just one more step in the inevitable bifurcation of the Internet down to national barriers / legislation / cultural beliefs. In the not very distant future (within 15-20 years), the commonality laws, things nations have in common with regards to legislating the Internet, will be the minority. Every nation will want and will set its own unique policies (on top of any other agreement lines as eg in the EU).
There's no possible outcome for the Internet other than becoming another well regulated medium, given a few more decades. The laws will pile up, it's what politicians do, and the Internet is the single biggest target.