Why Won't Google Video Just Die?
blog.wired.com
blog.wired.com
http://video.yahoo.com/ http://video.msn.com/video.aspx?mkt=en-us
etc
Search engines are simply always going to have video components. It's not going away ever.
Personally, I find it at least as useful as Youtube if not more.
It's branding. "Google Video" has a certain meaning to viewers, and "YouTube" has a different meaning.
Even if they get the same backends, it would make sense to have more serious and educational videos on "Google Video", while music, entertainment and amateur videos live on "YouTube".
http://youtube.com/watch?v=EsEYpJMYIIw
30min vid
So in this regard the article is correct.
http://help.youtube.com/support/youtube/bin/answer.py?answer...
Personal note: I suspect Google introduced this policy to ensure that Google Video is not rendered obsolete.