The DMCA doesn't say they have to pre-screen everything. Youtube goes above and beyond what the law requires (in many cases to the detriment of its users). The law doesn't say "you have to do whatever other, similar companies do". It says "here is what you have to do".
Of course Grooveshark might still be inducing infringement or something like that, so I have no idea about your second paragraph.
Of course Grooveshark might still be inducing infringement or something like that, so I have no idea about your second paragraph.