Basically it looks like YouTube is too scared of lawsuits to acknowledge any fair use rights exist at all. Either you agree with ads, or your content is getting removed, the whole appeals process may work only if the content is not actually copyrighted, but is completely useless for fair use grounds as claimant can just repeat their claim of copyright ownership (which is true) and have it deleted anyway.
That's absurd. Youtube provided extensive avenues of dispute and appeal. I think Lionsgate is wrong in this case (although I'm not wholly sure, because using their source material for ~30% of the video is pretty substantial in my view), but Youtube isn't there to act as a court or arbitrator. by law, it has to respect the claims of copyright holders. It is not the agent of those seeking to use copyrighted material on…
Please see http://news.ycombinator.com/item?id=5033525 above.