I wouldn't say that they're "sad" about it but they clearly seem to put the effort to remove it, it's possible to find some pirated content (movies, music, TV footage etc...) but it's definitely a lot more difficult than any other streaming site I'm aware of. Go to a website like dailymotion if you want to see a "mind boggling" amount of pirated content (and even then, it's relatively tame compared to even smaller streaming sites).

It's a clearly a consequence of Youtube being owned by a tech giant and having such a high profile, all the right holders are willing to tell their lawyers to pull the trigger if they find their content hosted illegally on Youtube. It's probably easier and cheaper for Google to be proactive about it than dealing with the probably tremendous amount of complaints that would be generated if they waited for right holders to make a move.