Employing that many people would likely cost in the region of Google's entire earnings. It would make Youtube, or any service like it, financially impossible for anyone to run. So sure, I'm not saying we need Youtube, but what you're saying is we can't have it or anything like it.
I really appreciate YouTube's existence, but chances are a communal video streaming site that the entire world can trivially upload videos to should probably be a government run service if it exists at all.
There are a plethora of much more conservatively sized video uploading sites that vet and have specific contracts with their content producers.
