I'm not sure what type of response you're expecting because in their previous response they directly addressed Google's claims and clarified that their app is not using the Youtube API and therefore isn't bound by its terms of service. Google apparently sent their response to /dev/null and just reiterated their previous claims yet again, indicating that they're not engaging in good faith.
How about, by scraping my website they have agreed to my TOS which unilaterally supersedes any other agreements that may be in place. Any disputes between parties must be resolved by binding public votes on Twitter.