You can refuse to remove content without a court order even if you're legally allowed to remove it without one. Why should they choose to create a bad user experience by removing content via algorithms? They could just not.
> Why should they choose to create a bad user experience by removing content via algorithms
Removing obscene, explicit, and even illegal content is only practical at YouTube's scale using algorithms, the idea that they should just abandon algorithmic removal of videos entirely is not a realistic suggestion.