Matt, this does not address whatsoever the point being brought up. And in case you missed it, I will try to cite it as clearly as possible here:

This is a case where google wants people to mold the internet according to what their current incarnation of their algorithm says the way it should be.

Rather than google trying to mold its algorithm to understand the internet, natural links vs. spams, and their respective authority and value.

Google here is saying that all links from this site are suspect, even when the link in question is 100% valid, quality and relevant.

Instead of going back to the drawing board and trying to fix the algorithm, google has discovered that since they are so big now, it is easier to play the "benevolent" dictator and dictate to the whole internet, how and what they should be doing.

And to mete out knuckle raps when they get out of line.

Do you see the point now?

The model (google's algo) should fit reality. Rather than forcing reality to fit the model.

I believe this is what the author is trying to communicate by saying "google is breaking the internet" - what he means is that the internet is becoming a 'google' version of itself, rather than what it would naturally be.

It's worth noting that Twitch partially became popular because it wasn't YouTube, and gamers could stream without content restrictions (e.g. copyright and region)

Miraculously, this could end up making YouTube comments even worse.