Well, he's not saying "raving Ax murderers" and that kind of exagerration does nothing to credit the opposition. He's saying increased aggression. Of course then again since kids tend to be pretty violent and aggressive (being humans and all) that's generally a cop out for kids being kids in most cases.
He's wrong, but his basic arguement is that some kid playing a violent game might be more likely to see violence and anti-social behavior as an increasingly viable way to deal with problems. For example a kid playing a crime game winds up listening to the espoused code of ethics, winds up short on money, figures peope owe him, and winds up trying to rob a store where he shoots the clerk to steal his money. That kind of thing DOES happen, and it's frightening, while I disagree with him, Mr. Yee is argueing that it makes that kind of chain of events more likely.
Of course then again it can also be argued that with entrenched bureaucracy, a bad economy, and brutal and soulless corperations who control the system, providing no viable, socially acceptable solutions to problems, I think violence is increasingly on the rise due to people who would prefer to be peaceful realizing there is no alternative. Basically if you want to get something done, or get justice, you have to do it yourself, and that means going through people foricibly or using tactics of fear and violence rather than working cooperartively with them. After all your typical corperation just wants your money, and doesn't give a crap about you, and if they screw you out of it they have enough control over the system there is nothing you can do about it to recover.
... or simply the old criminal joke about "don't blame me, blame society" is becoming less of a joke with each passing year, and seeping down into the youth because the world is increasingly that F@cked up. This leads to the violence at increasingly young ages, as kids see the world around them and what they have to look forward to, not to mention dealing with draconian authority as soon as they can speak in terms of schools trying to regulate what they can wear, do, say, and think to an unprecedented degree.
Games aren't creating the violence, as much as I think they are a form of pop culture that mirrors what we're seeing in society with the wars, domestic situation, and increasingly mixed opinions about crime. While the "peace at any price" left wing attitude might disagree, I think ultra-violent war video games are becoming so popular in reflection to the realization that sometimes you just need to accept certain groups of people (yes entire groups) are bad and kill lots of them for your own reasons. Things like chasing down a terrorist subway bombing group and killing them bug those with left wing sentiments who would rather promote the idea of peacefully talking to these people, and turning the other cheek for example.
I'm probably not organizing or articulating this well, but also consider that it probably hasn't gone entirely unnoticed that you have major corperations as the bad guys in games like "Saint's Row 2". A lot of the behavior in that game (as over the top as it was) being justified by the corperation being bad, and there being no other real way to deal with them. Of course the doubtlessly intended irony of The Saints themselves becoming a huge business enforced by violence for the third game is probably overlooked.
The point is understand what the guy is actually saying and his motivations. He's talking about tendencies, trying to blame games for trends coming from a messed up society where the problems are too big and contreversial for guys like him to actually try and address. There are also political messages connected to it doubtlessly due to the attitudes expressed in those games and how the violence is used, when it runs counter to what the politicians want the youth to think. Despite a lot of anti-war/anti-nuke elements that are very leftis, games like Modern Warfare *DO* glorify war and properly present it as the appropriate solution to a lot of problems.