Good reply. I was focusing more on the Agency and the Blogger's actions and not on What Gov Loop did. In general, I believe that reposting in YouTube content that has been downloaded from other sites without notifying them is a practice that should be frowned upon, since IMHO it is all to easy to take it out of context and subvert or change the original intent of the material. Recommended practice should be posting the links to the downloaded material. Embedding is a second choice since people at least people have the option of going to the source.
If anything, it should teach all that unilateral actions without pre-notification or agreement when using or changing others content is not the best way to go. There are often very valid reasons for restrictions of others re-use of website content, be they quotations, pictures, or videos varying from legal rights to policy issues. For example, the agency may have obtained permission to share content on its site, but not distribute it for other uses. It would be advisable that they agency clearly think ahead and figure out their position on what can and can't be shared and clearly post it somewhere on its site. This would at least avoid future confusion.