Yeah heard about this, quite retarded.
I think Youtube is desperate to try to maximize their profits so any excuse they can find to demonetize a video they will do it. That way all the ad money goes to them. Though part of the fault is the advertisers too for being so petty. I don't even know why they care about the content of videos or comments, they're just advertising. As far as they should be concerned they should only care that people are seeing their ads.
Someone really needs to start a competitor.. but the issue is the hosting. Not something cheap to host by any means unless you own your own data centre, which Google does. Most ISPs also don't allow servers, or provide static IPs, so it's not like you could even try to do it from home and start small.