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YouTubers definitely cross promote each other, but it's not nearly as disgusting as you would think. In many ways, growing a new YouTube channel is very similar to growing a startup (these people are essentially startups themselves). At this point in the game, it's almost necessary to know someone more popular than you in order for your channel to get noticed.

I've worked with many YouTubers (I'm Ryan's co-founder), and can honestly say that they are nice people who appreciate each other's talents and want to help others like them succeed. They have a very strong sense of community, and they all know (or at least know OF) each other. Of course there are a few who do nasty things to try to get ahead, but those are by far the minority, and generally don't do well in the long run.