I don't believe YouTube will necessarily die, but the people who actually do YouTube for a living will be utterly fucked up the ass, because a small amount of videos being demonetized is a significant decrease to their income, unless they do have a rather large amount of videos, but the decrease is still noticeable. It might cause them to stop making content for the time being until YouTube fixes itself up and realizes what they have done, but the new rules they put into effect basically marks almost all videos on YouTube as being bannable, and scare people off from putting new videos up.
Maybe for some reason it is the secret goal of YouTube to discourage putting more content up? But that would be pretty stupid, because all google related sites would probably decrease in activity as well (At least in my opinion). I don't think they will keep this up for long since YouTube is the most recognized site made by google, but hell if I know that. Let's just sit back and enjoy the view.