I think (correct me if I'm wrong) that the distasteful publishers were receiving money from the adverts. So the headlines were technically correct to say "Marks & Spencer gives money to homophobic terrorists". There is a link in Google's advertising model between the page and the advert - the video is the placeholder on which the publisher is placing its advert.

I accept that the solution is difficult, but Google designed and benefits enormously from this system, so it's reasonable to expect them to do something about it.