That is not an accurate description of the situation. Her music will still be published on YouTube if she doesn't accept their terms and walks away. She will have to take action (endless DMCA requests) if she wants to try to have her data not published on YouTube.
The terms they are offering are not the terms to have her data published on YouTube. They are the terms to get a cut of the money Google makes from her data on YouTube.
What you are describing is how Apple or Amazon work--if an artist walks away from their deals, their content is not on that service.