I agree in part with them and in part with you. I agree with you that they are using language loosely and it harms their point - let's not forget, hosting content is not free. YouTube is still subsidizing every video that is de-monetized.

Howevery, I think their overall point is that there should be a standard principle regarding content. There should not be "levels" of content where content that advocates a particular view, or comes from a particular group of people is deprioritized, unless that view is heinous or the content itself is dangerous. YouTube wants to be treated a public forum, so should not hold some views over others unless it is actively harmful.