It's on the yogurt container because its lack of vents causes it to overheat if sitting on a smooth surface. It's unplugged because there's no clear power button on its very stylish remote. I happen to know that if you hold down one of the keys long enough it will turn (mostly) off, but I don't think this knowledge is shared by others in the house. It needs to be turned off because of the whine of the harddrive and the aforementioned overheating problem.
Using the remote to enter search terms for Youtube is possible, but is a dreaded chore. Generally one says "Here, let me show you something" and then has to call the other party back from another room when done with the laborious process. This is not attempted as much as when the device was new. A keyboard as a remote may look silly, but would at least make simple things like this possible.
Overall, it's very cute and warm little boat anchor. We'll probably eventually manage to get Boxee installed on it, but the lack of a reasonable means of entering text will really limit its utility. So while I agree that Apple "really gets it", at least in this case I'd apply this solely to their marketing rather than their usability.