Yes, this would cause loss(taking product) through deception (redeeming points you didn't earn).
Fraud is definitely a crime - and it is undeniably a form of fraud. No doubt you would have a hard time getting a DA to charge someone for it, but they theoretically could.
Of course - multiple pre-warnings, which includes contact from social workers with resources to help them find somewhere to go/help moving their belongings. But that would cost the government money, and that won't fly in the US.
More violent? No. But there are mountains of evidence that video game addiction is detrimental to people's mental and physical health.
Nothing wrong with spending some spare time gaming, but when it becomes something you arrange your life around it's not healthy.
Just don't invite the whores, I hear they steal lemons..
I feel the need to point out that most of the "problems" you stated about YouTube are due to scale. If any YouTube competitor had to deal with the sheer amount of content YouTube does they would have the exact same problems.