If you see the "Video removed" message next to one of your uploaded videos, it means the video has been found to violate one of our policies and has been taken off of YouTube. More info here on the next steps: https://goo.gl/VzHRad
I am aware of the Guidelines which is why it surprises me this video got removed: Since there is nothing that violates the Terms, I have appealed. That still doesn't answer my question: Does @YouTube actually watch the video to verify that the video is indeed "inappropriate?"