youtube-dl scrapes the website, from what I can tell. The API has rate limits that youtube-dl would bypass in a few minutes if it were to use the official API.
That's primarily what's got the RIAA's panties in a twist, is that youtube-dl is 'bypassing' youtube's protection measures to prevent their site from being effectively scraped.
Still can't understand the logic, the website is open! If the information can get to my eyes and ears I can put a recording device in-between. At the end of the day the video is being played on my computer. The only logical endgame, if stuff like this allowed to stand, leads to general purpose computing being outlawed.