I think it is generally a good idea, but find this description a bit strange:
"Terrorist content is any material which amounts to terrorist offences under the EU Directive on combating terrorism or under national laws — including material produced by, or attributable to, EU or UN listed terrorist organisations.”
This could actually have a negative effect similar to what happened with YouTube removing North Korean propaganda videos a while ago. Researchers looking at North Korea were impacted because some videos were uploaded by North Korean accounts and you could gain some insight and small pieces of information from the videos that you wouldn't have been able to find elsewhere.
In the same way, removing videos uploaded by groups in Syria, for example, could actually be a bad idea in some cases, because they have also included information and locations of training camps and stuff in the past that were found by civilians, not by any intelligence agency or the military.
This it totally not going to be abused to shut down small outfits that don't have a 24-hour staff.