I'm not saying there's no possibility this is "illicit," I am saying this is not the same as illegally downloading music off of Kazaa.
But I'm not a lawyer.
The law makes it clear downloading copyright material without holding copyright or a suitable license is usually not legal, but exceptions exist in many countries including the US (where the exception is called fair use).
Some uses of youtube-dl with RIAA-member-copyrighted content very probably fall under that fair use exception, even if other common uses do not. For example, if a music critic wants to use youtube-dl to import a music video into video editing software to produce a review of it, interspersing only a small excerpt of the original video with commentary on it, that's classic fair use and would be an easy win in US court if accused of copyright infringement.
If the actual and as-marketed purpose of covering those copyrighted videos by 3 of 94 unit tests is to make sure that such noninfringing fair uses of youtube-dl are possible with the technologies involved in those videos, I expect that the DMCA claim is invalid. If the actual or as-marketed purpose is to ensure that it's possible to infringe those videos, then the DMCA claim is valid.
That's a question of fact for a judge (in a bench trial) or a jury (in a jury trial). If the more favorable answer is true and credibly defensible in court, youtube-dl might be able to survive a motion for summary judgment, gain support in the court of public opinion, and lead the RIAA to consider settling or dropping the claim.
But if they were indeed trying to facilitating illegal circumvention or infringement, or if they can't credibly prove otherwise in court, yeah this won't end well for their ability to host youtube-dl in the many countries that now have a DMCA-like law.
(Disclaimer: I'm not a lawyer, just a former law student layman who remains a legal geek interested in and relatively informed in these areas. But I don't claim to be authoritative and this is definitely not legal advice. youtube-dl should definitely involve a suitably expert and qualified lawyer if they're going to fight this.)
Those companies mentioned and or others promoted and or were well aware their users were downloading copyrightable material which is contributory infringement.
This YouTube DL is used for the same thing and probably the same percentage are using it to download copyrighted content.
Not that I pro RIAA ... rather trying to detail the best case example for the RIAA potentially having a case against this tool.
The RIAA and MPAA were suing users of Kazaa, BitTorrent, etc individually because of this law you may or may not like, but that's again the law!