That's how bad YouTube's draconian copyright system is, the DMCA is an "upgrade."
Compare this to the current system where they actually have the ability to evaluate the content ID notice independently and then make adjustments. They may not always use that ability, but at least they have it. With DMCA, their hands are tied.
Specifically, 17 US code 512 (g)(2)(C) (emphasis mine):
"(C) replaces the removed material and ceases disabling access to it not less than 10, nor more than 14, business days following receipt of the counter notice, unless its designated agent first receives notice from the person who submitted the notification under subsection (c)(1)(C) that such person has filed an action seeking a court order to restrain the subscriber from engaging in infringing activity relating to the material on the service provider’s system or network."
That's two full weeks (not including weekends and holidays), where even if the DMCA is clearly bogus, they have no choice but to keep the content offline if they want to keep their safe harbour status.
So it may not be the best system, but the DMCA isn't either.
[0] - https://www.law.cornell.edu/uscode/text/17/512 section (g)
They also have a separate automated system ("Content ID"), which can automatically block videos or put ads on them and pay the content owner (the latter being a unique feature not possible with just the DMCA), and because it's controlled by YouTube and is more flexible than the law, it provides a generally better experience to the uploader compared to getting a DMCA takedown notice.
If an uploader gets a Content ID claim, then they can dispute it, and if the person making that claim is forced to file a regular DMCA takedown if they want the video to be taken down. Content ID is just the initial step in some cases, but at any point in the process, the DMCA takedown process can be invoked.
I don't believe that's true. The claimant can merely tell YouTube, "no, my claim is legit" and YouTube trusts them implicitly without requiring a DMCA notice. While the claimant could produce a DMCA notice at any point, ContentID doesn't require them to to knock the video offline.
I've had to battle YT multiple times over music or content which I owned the rights to. In many cases, I was the creator of the content in question.
A YouTube replacement will be better in this respect only as long as they remain small and under the radar of the movie/record industry. :/
To be fair to YouTube, their ContentID system is better now than when it was launched. (Now it'll actually tell you where in the video the infringing content supposedly is, and allow you to do automatic audio-replacement in some cases.) And to be fair, they've finally implemented an escrow system that can help for some false ContentID strikes.
But they've still taken no action I can see to reduce the number of fraudulent ContentID strikes. Creators have a "three strikes, you're out" system; ContentID claimants seem to be able to push out millions of false claims with absolutely no response from Google.
If I'm liable to lose access to my account for using someone else copyright without permission, than I see no reason a ContentID claimant should get off scot-free for claiming someone else's copyright (or a public domain work) without permission.
If there was some enforcement of that in place, I'd call the system "fair". As-is, it's grossly unfair.
I'm sure it would scare at least some percentage of them away.