2. Humans make mistakes as well, especially as volume of content increases and policies get more nuanced.
3. There's way more violating content then you could ever imagine. As just one example, YouTube reported having to remove >1.8 BILLION comments for spam or other policy violations in 2019 (https://transparencyreport.google.com/youtube-policy).
Regarding 1: I find it unlikely that most DMCA takedown notices contains traumatizing content. (Arguably) most of it has a copyright on it, which means that someone probably wanted to sell it to a sizeable market. The DMCA takedown notices identify URLs, so you don't really need to use the same pool of people that screen for child abuse and various horrors, and they don't get an unfiltered view of every sort of terms of service violation from every platform, just potential copyright violations, a completely separable issue.
Because I, the user, don't want that. I don't have a problem subjecting myself to Content ID in exchange for the ability to just host all sorts of crap.