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Are you visiting the site from US, EU...? My experience is the opposite also. Youtube experience is good, but Vimeo doesn't show any buffering problems and bandwidth seems fine.

The last think I'd want is for Google to buy them, honestly. I think its good for everyone that theres an alternative platform to Youtube that revolves around a different style of videos.

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Same (opposite as OP) experience here in one of the Scandinavian countries (on TeliaSonera's network). Buffering and seeking always happens almost instantly with Vimeo, and they deliver better video quality.

YouTube often fails to load videos here, and I have to switch between bandwidth settings (up/down, doesn't matter) to get things going.

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