They are definitely blocking access to the web site now. First, Google blocked the app because it 'didn't comply with their policies'. Then Amazon changed it so YouTube access from these devices was, essentially, directly through the website. Now that is blocked as well.
Google has a point about Amazon not carrying their devices, but I'd take a different approach - I'd lead every YouTube video played through a Fire device with an ad for Google's devices.
What I find jarring is the asymetry of the effect.
Amazon punishes Google directly as a company: users wanting Google product only have to change the URL in their browser.
Google in return punishes customer having already bought their Amazon device.
If the customer uses a Fire stick for intance, the only alternative to have youtube on the tv is to buy another dongle.
The level of fucking with the end customer is disproportionate.
And Amazon Prime Video punishes me for trying to play video on a device via VGA cable, which they say is not HDCP compatible, therefore they limit it to 480p (when the projector supports HD/1080p).
If this really annoys you, and it would annoy me, you can buy an HDMI splitter that strips HDCP. They run from between $5-$40 depending on whether you trust some no-name brand.
and the rest of the world just source their content via explicit means. Because they find their time more valuable then a "legal grey area"/"moral high ground"/"doing what is right".
Google has a point about Amazon not carrying their devices, but I'd take a different approach - I'd lead every YouTube video played through a Fire device with an ad for Google's devices.