Ugh. Ads on AppleTV Youtube. %$%^& that! I put up with them on my Mac, iPad and iPhone. Give me peace on my AppleTV! That was one of the nicest things about YouTube on AppleTV.
EDIT: If this new version of the app for AppleTV allows me to watch paid content through YouTube, then I'll be alright with it. There's a bunch of movies available on YouTube for rent that I currently cannot get on iTunes or Amazon Instant Video, so ads would be worth the price of admission for me IF this feature was implemented in the new AppleTV YouTube app.
EDIT #2: Disappointment. Does not work. I can find a movie for rent on the YouTube AppleTV app, but when I click on it, it says "This video requires purchase", so I go to my Mac, I purchase the movie rental for $3.99 and then go back to my AppleTV expecting to to be able to watch the movie, only to get an error message saying "Sorry, this video is unavailable on this device" This should be enabled (and if it's Apple's restriction, I need to know, so I can complain to them, though they could be blocking it the same way they will never put Amazon Instant on the AppleTV, but I've never though of YouTube as a competitor, even if it IS owned by Google. Renting obscure movies is a small side part of YouTube, not the main mission).