I don't see anything wrong with that. Google did this before to fight search engine spam. Top positions for money keywords in search results were manually reviewed by humans. Now advertisers do not want to be advertised on specific videos to avoid risk of brand damage.
This isn't true. Top positions were reviewed to determine the best parameters. A review didn't affect that one individual sites ranking, but all sites as a whole.
edit: i am pretty sure the websites that were marked as low quality lost their rating on next google search update.