Should Bing create their version of YouTube? ?

Perhaps
Microsoft should purchase a competing online video provider
such as Vimeo or DailyMotion

Yeah they should have but I'd say that they lost their chance now that the COPPA scare and adpocalypse is over.

Dear Lord please no...
haven't they ruined the internet enough?

no. there's a p2p youtube knock off and patreon-like websites that allow fans to fund artist projects.  the p2p project, i wish i could recall the name, is promising in prospect (at least until someone finds  a Torrent security vulnerability and cripples everyone's computer).