Is this even slightly surprising (or unreasonable)? An ad placement agency--which is effectively what google is acting as from an advertising perspective--wants safe, uncontroversial placements for at least most of their clients, especially big mainstream ones. They're mostly not looking for "edgy." The main surprise to me is that advertising support for a fair bit of non-mainstream content has held up as long as it has.
The boundary for what gets demonitized are arbitrary and ridiculous. It's not just people dropping racial slurs or showing graphic violence. It's comedy channels, science channels, etc...
It's probably the only thing they can do, but it really is an awful way to treat people who should be your partners.
