It's quite grim. Machinima had been around since the year 2000. I remember watching their stuff back when they were still new around 2002. I kept that up until a few years ago. It's a sad day. One of the originators of Machinma as a form of video creation and the one that coined the term itself and made their company name no less. It's the way of the corporate world I suppose.

Also it should be noted that Machnima is owned by the same parent company that owns Rooster Teeth but Rooster Teeth.
Also many of Machnimas shows were viewable else like on Amazon video and they were all cancelled so it's not just down to the youtube copyright. They wanted to move some of it into the Fullscreen and eliminate the rest rather than bother to make use of it.

Too bad that once you remove something from the internet it's gone forever.