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There is a Google YouTube app for iOS, though.

Apple developed the original YouTube iOS app with Google's blessings and pulled it after Google released their own official version.

The API is JSON over HTTP. Getting permission to use it is a completely automated process.

And I would assume getting banned from the API is also a completely automated process.

I guess the Windows Phone guys don't talk to their Xbox counterparts...

So what? I think the XBox YouTube app was developed by Google, not Microsoft.

WP does not ban adding ads to apps.

If Google made a competing game console, would be interesting to see if they would have withheld it like they do on Windows Phone.