I'm sorry, you're wrong, iTunes was also a factor. Here's another quotation from the time (2007)(techcrunch):
"Was the decision [to leave iTunes] influenced by NBC’s ownership stake in the iTunes-competitive upcoming Hulu service? Almost certainly. The last thing the TV networks want to see is Apple having the kind of control over TV content that they do with music - 76% of online music sales come from iTunes."
This is what commentators were saying at the time. They may be saying something different in retrospect, but at the time NBC was embroiled in a dispute with Apple over pricing. I'm not denying that YouTube may also have been a factor, but the post I'm responding to wondered why Hulu videos aren't available on the iPhone, and it's because it's competition.