And it seems they are now threatening to ban people who upload it again. But apparently GitHub CEO Nat Friedman has also been actively trying to help reinstate the repository.

See e.g. https://www.bleepingcomputer.com/news/software/github-threatens-to-ban-users-who-bypass-youtube-dl-takedown/

It's sad that tools used for legitimate purposes are being banned because of the potential for misuse.

A knife can save lives and a hammer can build lives. Should we avoid using them because they can hurt people too?

Legal arguments aside, even unofficially packaging is useful, and as the team already found out, it doesn't have to be announced or in the demo.

It depends on the (presumed) intent to use: Judges / lawyers are not as stupid or disconnected from reality as most people think they are. We know since 2010 that most bittorrent traffic is not of the legal variety. So you might be able to convince a judge otherwise but this will require time / money / effort. And not yours, but the time / money / effort of @girish and @nebulon.

BTW: If you handle your knife in your kitchen - ok. If you carry a knife to a protest that later turns violent - you'll face a much higher charge, even if you never used it.

A knife can save lives and a hammer can build lives. Should we avoid using them because they can hurt people too?

Legal arguments aside, even unofficially packaging is useful, and as the team already found out, it doesn't have to be announced or in the demo.