>>yes, it could be seen as sexy. I and many others thought it was sexy. So what?
So what? So it indicates that a fair number of viewers thought it was sexy, that's what. You weren't watching wrestling, you weren't discussing techniques and holds and who was the better wrestler, because that's not why you were watching it. You were watching it because you thought it was sexy. Apparently, the person who flagged it also thought it was sexy, and the staff member who reviewed it agreed that it was sexy; too sexy, in fact, to be permitted on YouTube.
>>Some people would see it and see nothing but a wrestling contest, while other people might be very turned on by it.
It would appear that people seeing it as a "wrestling contest" were in the minority, and I suspect that it was not presented as just a wrestling contest. If it were, the very worst that would've happened would be that it got age restricted. By its intent, it crossed that fine line between tolerable and not appropriate. If the uploader has the option to appeal, he may do so. YouTube may or may not reverse their decision. Based on this discussion, I'd say the odds are slim.
>>Some people have a foot fetish but Youtube's not going to ban the showing of feet.
I wouldn't recommend betting your paycheck on that. YouTube is notoriously pretty heavy-handed when it comes to foot fetish videos. They've gone so far as to remove videos from a shoe salesman, who was innocently advertising his line of shoes.