And if any of those services ever get as big as twitch they will be forced to as well.

Precisely, the problem isn't Twitch implementing this. It's the copyright system that forces them to do this.

No, it really isn't. Under the DMCA they are free from liability if they just sit there and respond to DMCA requests as they come.

Someone could set up a bot to send DMCA requests under the same algorithm, but they'd be guilty of perjury if they lied.

That stops being realistic when you get to the size where you have thousands of DMCA requests coming in a day.

This doesn't exist because as soon as those grow enough, they will be forced to police content proactively.

Where would you go? Every centralized service will eventually run into this problem of contributory copyright infringement.

If you truly want to change the playing field, free us from the shackles of copyright, and bring us to a new world of open creativity and sharing, your best bet is to invent some sort of exclusively peer-to-peer video sharing platform so centralized government and their dogs won't be able to kill the entire service by taking down one entity.

Eventually. At which point, there may be a move to yet another service.

It has begun already actually, Hitbox is apparently getting a huge influx of new users [1], their site [2] is not responding.

[1] https://twitter.com/hitboxliveHelp/status/497150137933000705

[2] http://www.hitbox.tv/

Won't happen, example: youtube.

YouTube didn't have much competition when it happened. Twitch is strong, but not as dominant as YouTube was. There exist alternative services (HitBox, Azubu,...).

There wasn't much competition when Twitch.tv spawned from Justin.tv either. However, that's not the point. The point is the majority of the users are entrenched in one service. You can stream from whichever you want, but if the audience keeps going to twitch, you're stuck publishing at twitch.

The majority of Twitch users follow only a few streamers. If the streamers migrate, a substantial portion of their viewers will follow.

Contrast with YouTube: most people view videos from a wide variety of uploaders. If one or two uploaders leave, the viewers will stay where they are.

Some streamers have tried going to other services, but they lack the brand recognition.

Chicken-and-egg once again.

Until those services get popular and grow up like Twitch. Then they too will have to play by the big boy rules.

Google bought Twitch. They are not an independent entity. This is Google doing this.