The kids find it entertaining. Its almost more about the personality of the person "presenting" rather than the game.
No almost about it, there are literally tens, if not hundreds of thousands of videos of the same game on the tube yet the kids watch pewdiepie, they obviously enjoy him.
As for the "waste of life" argument, how about Love Island? Big Brother? I'm a celebrity? The latest one, "Bromans"? All drivel of the highest order, stuff that makes me cringe yet people love it. Different strokes I suppose.
I must say I do find it a bit odd that we've literally watched pewdiepie grow up for the last 7 years. Dunno why, just feels odd.
As for the video, I thought it was a storm in a teacup but having watched the video, it's very clear that this is something he probably does very regularly when not on camera but just let one slip this time. It just came so naturally to him. I can't say I'm bothered tbh, but then very few things offend me. I do however think he's way out of place to behave like that as there will be people who get offended by it.
As for his future? Who knows? Google might cut him loose, but regardless of what happens, he's just got some serious press exposure and that's always good for business, but he's also a hot potato at the moment so who knows. Time will tell I guess.