Content ID was not at all alien to the 90s Congress; the DMCA explicitly calls for the industry to develop such systems, though it stops short of requiring YouTube to do all the technical heavy lifting:

(1) Accommodation of technology.—The limitations on liability established by this section shall apply to a service provider only if the service provider—

(A) has adopted and reasonably implemented, and informs subscribers and account holders of the service provider’s system or network of, a policy that provides for the termination in appropriate circumstances of subscribers and account holders of the service provider’s system or network who are repeat infringers; and

(B) accommodates and does not interfere with standard technical measures.

(2) Definition.—As used in this subsection, the term “standard technical measures” means technical measures that are used by copyright owners to identify or protect copyrighted works and—

(A) have been developed pursuant to a broad consensus of copyright owners and service providers in an open, fair, voluntary, multi-industry standards process;

(B) are available to any person on reasonable and nondiscriminatory terms; and

(C) do not impose substantial costs on service providers or substantial burdens on their systems or networks.

The passage you quoted doesn't call for anything closely resembling YouTube's current system. All it says is that YouTube (where YouTube is standing in for any provider) has to be open to banning repeat infringers, and can't claim DMCA protections if it tries to stop content holders from identifying their copyrighted works through software that is the product of "an open, fair, voluntary, multi-industry standards process."

In the context where the DMCA was written, it seems most likely that they were thinking of, say, Napster banning known copyright enforcement agencies in order to prevent them from scanning its network.