You make the assumption that YouTube videos are all Flash. That are not. Many of them are H.264 and play quite well on iPads and iPhones. YouTube is rapidly converting it's video content to H.264 and dropping Flash. Less than 26% of video on the web is still Flash and most of that is advertising. . . And it's getting less and less every day.
It's been a long time since I've seen a YouTube video that refused to play in situ on my iPad or iPhone. There are still some. . . But they are rare. So your proof is not. Especially when your "proof" says that YouTube itself won't work on your vaunted tablet.
any youtube related problems are fixed with the mid816 I believe, I could be wrong.
Are you saying that youtube videos that are embedded on webpages do play on the ipad, because typically those youtube videos are no longer flash but are h264?
It’s been a while since I’ve looked at what youtube is doing encoding wise. If I was to upload a video to youtube, youtube would encode it in h.264 and not flash, yes?