As has been noted elsewhere, Peter Sinclair's video that had been removed from YouTube because of Anthony Watts inappropriate DMCA takedown notice is now back.
To be completely accurate, YouTube presumably hasn't reviewed the copyright issue, instead they're just following DMCA procedures that allow them to restore content automatically without them being held liable. Watts theoretically could still bring a copyright claim against Sinclair, but the fact that he hasn't in the time period since Sinclair's counternotice went up suggests that Watts knows he has no case.
Apparently Watts hasn't said anything more on his site, which also suggests he's figured out the score.
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