YouTube and removal of copyrighted videos

YouTube is the leader in online postings of videos. Videos that get popular on YouTube have literally millions of people viewing these videos, and people featuring in these videos become minor celebrities.
YouTube also has a large number of videos that show clips from movies, TV Shows and other copyrighted material. Owners of these copyrights look askance at these clips (or whole sections) occurring on YouTube and want these to get removed from YouTube.
What is the debate over ? Currently YouTube is offering the option of removal of such copyrighted material only as part of a deal between YouTube and the copyright owner; and this concept if making people see red. These owners have an objection to being faced with such a condition for removal of copyrighted material.
Read the article on YouTube's offer of removal of these copyrighted material.
It may be that this is only the first salvo in terms of business negotiations, and that eventually most people will make deals with YouTube. After all, YouTube also offers the promise of being able to extend media viewership to the young people who go to YouTube and who seem to be moving away from regular TV viewing.
Of course, if the issue does not get resolved, it will go to court, and I would expect that the court would not allow YouTube to keep copyrighted material on its servers.