What? No "free speech will no longer be allowed on the Internet" clause?
This is going way over the line. I aid in running a site where files have to be monitored for a number of guidelines set down by the owner several years ago. Our rules are nothing extreme and we do allow for plenty based on fair use. Only one in every 5,000 to 10,000 files ever has to be dealt with in a negative way, but it is doubtful that our traffic and uploading in a month compares to any of the sites like YouTube in only one day and yet the monitoring that we do is still difficult.
"Many of the world's most popular sites won't be able to exist as they do now, such as YouTube or Photobucket or Flickr"? They wouldn't exist at all! they would be shut down completely under the basis that they take too much manpower to maintain and therefore aren't worthy of the time and effort.