Google is a business and it has every right to operate as it sees fit. Being a company that is headquartered in the US, I can't believe it would censor this video at all in any jurisdiction. It's not out of character for them considering the lengths it went to appease China but I don't think that was the right decision either.

I would hope that if I was ever faced with a similar situation I would choose based on my conscience not on ignorant local laws, what was best for the business, or what seemed to be the easiest choice at the time.

Edited for grammar.