Content ID, on the other hand, is a problem of their own making.
It's possible that it's impossible to do any better than they currently are, but as we don't have access to all of the data that they do, we cannot make that determination.
If they hire from low cost countries from contractors. They will only have to pay 10k per headcount + additional 10k for various stuff.
That's only around 5 billion. Let's just double that, 10 billion dollars. That's it. Google can easily pay it.
From google's perspective, none of these blackmail or customer support issue is an actual issue, because you, the customer, is gonna use google's services regardless. The business case for paying support personnel is non-existent. Even if you're a paying customer, the overhead of hiring more personnel is not an effective use of capital - better spent on R&D and other scalable revenue generating options.
It sucks. But that's the reality.
Even watching every video that hits 1000 views would be a huge overkill, and that would already cut your budget by a factor of multiple thousands.