The important think to recognize about Youtube (as opposed to search, or ads) is that YouTube has no real competition and it's absurdly difficult to compete with Youtube. They're like Facebook but moreso. As such, they may end up being subject to different rules from other businesses if they're not careful.
Mainstream mentality has always been to freak out when something goes outside what they consider acceptable even if it is harmless. It goes back to the Oscar Wilde and he certainly wasn't the first.
Including the observers commenting on the stupidity with "So long as they don't do it in the streets and frighten the horses." While callous and somewhat homophobic by today's standard it pointed out how society really should be reacting - not giving a shit unless it leads to an actual danger.