
What happens if you use the iPad Safari browser and go to youtube.com/html5, which opts you into the HTML 5 Beta - does YouTube work, then?
Youtube w/ HTML5 in Safari does work, tried it in the simulator.
Good news!

The page currently features a dozen such major websites, including CNN, The New York Times, Virgin America, and Flickr.iPad features Safari, a mobile web browser that supports the latest web standards - including HTML5, CSS3, and JavaScript. Here are just a few of the sites that take advantage of these web standards to deliver content that looks and functions beautifully on iPad.
While I like HTML5. Is it really better than flash for video? While I hate flash ad banners, people will just make html5 ad banners soon enough. Did anyone have problems playing youtube flash videos on their macs?