Oh yeah post production on YouTube can definitely reach tons of outside people who know nothing about dg. For that reason it'll never go away completely.
If you wanna watch free footage from an event that happened a month you'll still be able to, but if you want to watch it next day you'll have to pay.
The trickiest part will be finding a financial agreement with the post production companies. Obviously YouTube views would drop, so you'd have to come up with a fair way for them to be compensated from the DGN side of things.
My gut still says the plan was to build things up to a point where it could be sold for a decent chunk of change to somebody like CBS or ESPN. It's pretty much an understood thing in the startup world, come up with the next big thing, grow it really fast and cash out while you can.
But yeah, this isn't an all encompassing grow the sport talk, more like a grow it so it's a legit money making opportunity for a few people.