It's bad, sure. Worse thatn not doing it. But ...
Legislation for pretty much anything on the internet is notoriously difficult to enforce. Look at torrenting. This is not even really a grey area, I think wether you do it or not pretty much everyone agrees that it is some form of media piracy. Or 99% of it is anyway, there are a few legal torrents.
But look at what happens when they try to prosecute. Not only is it nigh on impossible to get anyone into court and nail them down for what they've done, but anyone who tries immediately looks like Big Brother and is branded an asshole. Publicity no one wants.
So even if the US creates legislation that allows Capcom to sue some kid for uploading some massive Streefighter combo, would they actually do so ? To what end ? Not only is it shit publicity and not only would they make no real financial gain, but I think most companies can see that these uploads are actually GOOD publicity. Not only that, but it's completely free too.
As for RWEP, I don't live in the US, so Uncle Sam can chug on my horrible hanging hog. If YouTube won't host, I'll find somewhere else that does.
Again, not a good thing but I don't see it having any actual, practical effect even if it does pass. Hope I'm not wrong.