I wouldn't say it's
broken by design - it's just a matter of incentives that heavily favor taking content down over allowing it to stay.
- If Youtube issues a copyright strike that wasn't warranted, a single creator will be pissed of. And apart from Mr. Beast and a handful of others, youtube's relies on large numbers of small creators, so is quite resilient on that front. Apart from that - where are these creators going to go instead? There is no video platform, long form or otherwise, that even remotely offers the level of revenue sharing that Youtube offers.
- If Youtube, on the other hand, allows copy right infringing content to stay up , they risk multi million lawsuits by companies that make a living of selling and defending their rights, such as major labels or publishers.
So, it's sort of a no-brainer for Youtube. If there's any non-zero chance of copyright infringement - take it down.