I love this game, and respect the dev team, but Square Enix crossed a horrible line.

[Sheer]

English comprehension is clearly not one of your better skills.

His English comprehension is fine. What's wrong is his perception that videos of game footage are a form of "entertainment" - people don't watch videos of games because they find it entertaining. They watch videos because they either 1) want to see actual, unbias, in-game footage to get an honest assessment of the game before purchasing it, or 2) they watch the videos because they find the person who made said video entertaining. Trust me, if it were someone like me instead of someone like TotalBiscuit (using the reference the OP made), the videos wouldn't be half as entertaining.

As for the material usage license... I do think that the idea of strict regulations of the videos is rather unfair, but the game does belong to SE, and they have the right to do what they like with it. Regardless, I would hope/think that they have carefully considered their options and possible outcomes before just saying "No, you can't do this".

[Odd]

What's wrong is his perception that videos of game footage are a form of "entertainment" - people don't watch videos of games because they find it entertaining. They watch videos because they either 1) want to see actual, unbias, in-game footage to get an honest assessment of the game before purchasing it, or 2) they watch the videos because they find the person who made said video entertaining.

Ever watch the video of the guy who beat Super Mario 3 in 11 minutes? Now that's entertainment!