However in thinking more about it and reading other posts about it I realize their approach and openness is the real gem.
Youtube understands the basic 2.0 concept that user activity should not have to occur on your site. This is a very tough concept for some players to understand.
Key player still think that they can force or entice customers to join their social network, use their tools, and participate in activities only on their site.
Understanding that you need a quality site presence as well as a quality presence on the open Internet.
Google and Youtube gets this and made their API refelect this. You don't have to upload, search, and view videos on Youtube.