Sure, they wouldn't be able to proxy all HTTP requests through their own servers like they're doing now, but they'd still be able to do MITM attacks at the IP level. They're already messing with routes to Google Public DNS IPs so they could just as easily mess with routes to YouTube's IPs. I don't think DNSSEC is the solution in cases like this. Somehow getting everyone to use SSL for everything is a much better solution in my opinion.

As I pointed out above, DNSSEC doesn't stop this.

I am not just a DNSSEC hater, but the level of misunderstanding on DNSSEC is quite large.

When victim issues a query for youtube.com, I can intercept that query and hand back whatever response I want. Unless the victim KNOWS IN ADVANCE (which DNSSEC doesn't offer) that the response should be DNSSEC signed, they will accept my forged response.

DNSSEC solves problems we don't really have, and ignores the ones we do.