I think he reacted to the fact that Phil put ads on the video, not so much the video itself. And I think there was some animosity between the two of them, due to Phil being a part of their FGC group.
As John Rambo described it, being a part of an FGC crew is like being part of a brotherhood. You're all teamed up with the shared interest of playing fighting games. You don't give a shit about being big or being rich. You're just a part of this group that all love the shit out of this game, go to tournaments sometimes, and have get togethers at your home and watch EVO or have mini-tournaments, or whatever. So when Phil put up the video with ads, I imagine Howard saw that as Phil breaking a cardinal rule within the group for extra money.
And this is from personal experience, but it's also kind of an unspoken rule that what happens within your crew stays with your crew. Now, Tee was actually a veteran in the FGC; dude's been around while Street fighter Alpha was getting big, iirc. If he'd have shared with after maybe talking with his friends first or shared it on SRK Forums where pros and players alike would see the video, Phil might not have gotten so much shit. But to Howard, I'm sure, Phil shared info about a prominent member of a community that Phil's fanbase barely knows on a channel called Hate Live, mentioned weird shit about a deceased friend that didn't need to be said (no one needed to know Tee's living conditions, Phil), then didn't tell his friends before and after the video went up. So while Phil posted the video on YouTube without malicious intent, it probably looked that way to Howard, who might have been so pissed, he didn't watch the vid.
What's somewhat sad is that any hostility brought up by Phil posting that video would have been swept under the rug if Phil had just owned up and said what he did was wrong. But (and Phil's ego aside) that is now impossible due to the existence of that dumbass reaction to John and Howard's video, which amounts to "Fuck you, Howard, I dindu nuffin wrong!" What a waste of such a long friendship, dude.
I don't know. I guess what I'm trying to say is that, yeah, Howard overreacted, but I think he was more mad at Phil putting ads on the video than the video itself. And to be honest, I'd be just as mad too.