definitely helped. MS put a lot of effort into building a slick YouTube app and Google changed the T&Cs the week after it launched or something. Basically issued a takedown of the MS app because it didn't conform to the new standard they'd just introduced. I believe it was that third party apps had to allow ads, even though the iOS and Android apps did not.
Naw, you have it all wrong. They reversed engineered the YouTube API's and then suppressed YouTube ads. They deserved what they got for doing something that stupid and not thinking Google wouldn't find out.