I'd also point out that the DMCA means nothing if the datacentre is in the UK. You would probably get a cease and desist letter though and a threat of legal action through the British courts.
BTW Youtube has made some effort to remove copyrighted material as a result of the Viacom action but obviously there is still a lot on there. Jon is right in saying that it is Google/Youtube's muscle that is keeping more suits at bay. Even big media companies have to be worried that a really serious attempt to shut Youtube down would result in a hostile takeover bid from Google.
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