Good points in general. I just have a few question marks.

They will have to put in strict rules, censor content and content creators,

Why would they have to do it? Isn't the flagging by the users not enough? Doesn't this supposed to happen via community decisions via upvotes and flags?

The question is can they do what facebook ad google do not do and that is to fully involve the community in decision making.

Don't they do this already?