If I were a content producer, I don't think I'd like that policy, but as a consumer, it makes the service more usable, since I know that anything I can see on the ad-supported Youtube site would be available on the paid site.

Much better than the model that cable TV uses where when I look at the channel guide I can see all of the channels, including the ones that I haven't subscribed to, and it's not until I try to watch a show on one of them that I discover that I can't see it.

If that's what happened then good, but it sounds like people who don't agree aren't getting kicked off youtube, they're just not shown to subscribers.