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So when a competitor comes along, the natural way to differentiate is to say "we won't ban you unless you break the law".We are "Social Media X but with no moderation" is a braindead business strategy. I'm failing to find a source, but moot (this founder of the anything goes social website), once said of all the 4chan clones, the ones that never lasted were the ones that were started by people who decided to make their own 4chan clone after being banned from the site. Naturally people discovered those clones were filled with insufferable asshats and died off.
Naturally when you look at these video sites, very few of them actually offer the number one thing I would expect from a YouTube clone - revenue sharing. So not only are they not competitive with YouTube, but for a large group of people kicked off of YouTube, they aren't even substitutes.