You can find out more about their decision here: http://www.xtube.com/community/blog....is&id=ODI0OQ==

There are some interesting comments from users on that page as well.

Below is Xtubes statement on that page.
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It's clear that we should have explained this move before doing it but no matter what the reaction would have been the same. We are stopping webmaster uploads as a part of a new anti piracy campaign.

Due to webmasters/website owners not realizing that they need a webmaster account with linking code and sponsor information as well as public users that don't how to read we have decided to stop webmaster uploads and ask out members to use the content filter and filter out the commercial content and rake the site for and professional content that can be found. We realize that this seems unfair but we would like to give our "Tube" sites a new reputation. Unfortunately this new step forward is going to effect some in a negative manner ei, Webmaster will not be able to post new videos and collect referral income on them only older ones for the time being. Once again they are only suspended until we can make the necessary changes to better the site for all accounts.