I hate to sound negative, but I bought BananaTV last night and I'm sorry to say that it's not ready for prime time. The quality still feels "proof of concept". I'm finding it to be very unstable and buggy. Here is a quick list of issue that I have seen:
Many youtube videos simply wont play and if a video fails to start it leaves a pop-up window on the screen.
Very frequent crashing (I don't think it's last for three consecutive videos).
Starting a video sometimes launches two windows (one with the selected video and the other with the prior video).
The main problem with the issues above is that they require accessing the machine to clear the error. The app effectively requires a VNC app on your iDevice to recover from the constant errors. The whole point of Airplayer is to avoid exactly this.
On a side note, I hate the icon. A generic banana on my menu bar? Sure it's cute, but it has no relevance to the app functionality. The Airplayer icon was much more elegant.
Edit: looks like I should have gone with AirServer instead...