Why is Google Responsible?

There is no threat here to the internet or freedom of speech. This isn't the groundbreaking case Google wants to make it up to be.

The two main factors of this case are this:

A) Google was asked by the individual (or a representative thereof) to take the video down.

B) Google's refusal to do so netted them a measurable amount of profit

The question this case is answering is not whether or not an ISP or hosting provider is responsible for any and all content uploaded to their servers, the question this case answering is whether or not, as an individual, you have a right to demand that your identity/image/likeness cannot be used FOR PROFIT by a company without your consent. The answer is (thankfully) a resounding 'No'.

This has been law in the US for over a century (if I have my history right). This is why Depends™ Adult Diapers cannot just take your facebook photo and use you as the new face of bladder control.