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So, if she does not accept their 'generous offer', she won't be able to publish her music on YouTube, right? But if other people happen to publish it, and Content ID doesn't snag it down, she'll have to go through their long and painful DMCA takedown process to get her music off of it?

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No, that's not right. She can still publish her music on youtube either way. This is about signing up to the "monetisation" option where she can take some of the money from any third party video that ContentID says includes her content. She's currently using that service, and continuing to use it apparently requires signing up to the new agreement.

I'm not completely clear on this part, but I think she can still get ad revenue from videos that she uploads herself. The article is definitely talking about third party video uploads.

Ah, okay; but any of her music that she did not upload - would it be taken down automatically via ContentId, or would she have to petition them?

No. Google will only use ContentId to handle monetization. And only on their lopsided terms, which the artist isn't very keen on. She'd have to file DMCA requests for every single video it showed up in herself.

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