I could actually see SV being an impediment to innovation by "salting the fields" in so many product categories with hugely overfunded companies that will eventually flame out.
The problem is that, as far as I know, YouTube has not been wholly profitable for Google at this point, so they've really been trying to squeeze all the money they can out of it, and I feel it's come at the expense of the service itself. I spend far less time on YouTube these days.
I would be much happier spending money directly on a service which treated its users as customers rather than the product.
As far as other features, I think it's naive to say that YouTube has every feature someone could want a video hosting service to have. I feel YouTube could improve quite a bit in plenty of areas, particularly in how people 'watch' music there.