Canadian content would still be available all over the world... I don't see that as a great argument for this particular issue. Canadian content is typically good enough for Canadians as we have so many cultures here. I'm sure the algorithm can have some adjustments to overcome this. I think they are concerned about other things. Not sure they are altruistic here either. Do CBC shows suffer that fate? Good ones find there way out to the world.
It's not about being good enough for Canadians, it's about being relevant to what a viewer wants to see.
If an American mechanic has a great video on how to fix something, and a Canadian mechanic has a less informative video, the federal government should not be requiring YouTube to show me the Canadian one because it's Canadian.
That's the beauty of YouTube, it shows you the best of the best for whatever you're looking for or into. And that's why it's so successful.