nah, you could sign up without when it launched in the US, it was just not glaringly obvious to find, my cousin in cincinatti did it and he don't have facebook at all
Perhaps they have now removed that requirement. It doesnt change the fact that I use YouTube in the background for things other than listening to music, and dont want a Spotify account.
Another issue Ive just run into with the new app is that you cant change aspect ratio for videos, or view portrait videos fullscreen. The only way to view videos fullscreen is in landscape view, which gives you a tiny cropped image:
These are all things that could have been avoided if Google had stuck with the native iOS player, rather than thinking they can do a better job than Apple.