Earlier quoted context omitted.
It would be cool if anybody else could make a real competitor to youtube then Google would have to actually cater more to content creators. However, sadly I think youtube is just too far ahead and google has way to many resources and time spent in the space for any competitor to even be able to make a dent into youtube's market.
youtube is a huge moneysink. not only would it be hard to build, it would never bring money. Google has entrenched themselves in a monopoly here. I think antitrust laws should be applied.
If it's true that it isn't profitable how would anti-trust laws make it better? If it's truly unprofitable then separating it from the mothership means it goes bankrupt so no more Youtube. That doesn't seem like a better outcome than what we have today.
So it must be profitable to even begin to consider anti-trust regulation. Personally I think it is profitable although it likely has a very long time to recuperate investments (since it's mostly infrastructure like fiber, peering, caching accelerators, etc).