Sadly, I have to disagree with Alex. It is not YouTube’s place to act as arbiters of copyright infringement. Their obligations, when a notice is received,are to do a preliminary take-down to give the copyright holder an opportunity to file his lawsuit. Then they are to take whatever action is in accordance with either the agreement between the parties or the judgement of the court. While I agree that Sye has dishonestly infringed on Alex’s lawful copyright, he has not court judgement against him. With no such judgement, the right thing to do (on YouTube’s part) was to reinstate the video. They do not have the authority to issue a ruling of their own, nor should they. As to the rest of Alex’s relevant post, his objections are with the legal system, not with YouTube.
Yes, it would be nice, in this instance, to see YouTube rule against Sye in its own power. But that would set a dangerous precedent. YouTube took actions that were entirely predictable and mechanical. They left all the decisions to others with appropriate authority. And that is as it should be.