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This is the first time I've heard about the "Closure Library".

Do you think this is what the new m.youtube.com HTML5 site is built in? Is Closure a replacement for GWT?

It is not a replacement for GWT. Closure is for people that want to write Javascript. GWT is for people that want to write Java.

It looks like there's a "Library", "Compiler", and "Templates". The Library looks like a Javascript library, the Compiler looks like a Javascript optimizer, and the Templates look like the GWT-ish thing that builds HTML from Java (or Javascript?).

source: http://code.google.com/closure/

Closure Library: a JS library containing a bunch of useful stuff.

Closure Compiler: A compiler that takes Javascript as input and produces Javascript as output. Removes dead code, does various optimizations, and usually beats other minifiers by a small but significant margin.

Closure Templates: a templating system that generates Java or Javascript code. Handy if you want to generate a bunch of HTML from templates in Javascript, and you don't want to write all that by hand.

I've read that several Google properties are using Closure (at least Gmail and Reader if I'm not misremembering).

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