I'm picturing google making an xbox-mediacenter-like box that lets you watch youtube videos on TV with replaytv-style navigation(xJumps, xSkip, et al).
Here's the twist: you send the videos to your friends.
procedure: browse youtube videos with your laptop, when you see a killer video, you drag and drop in on a friends name.. it appears on their xbox. Or you drag and drop it on many friends, or you drag and drop it on a friends list, or you drop it on your 'rss feed'. if someone subscribes to your rss feed their google-xbox receives the video clips you drop on your feed.
This would create a powerful viral 'link-jockey' culture. It would be very competitive and great user-created content would quickly rise to the top.
viacom should just make their own utube that has manditory commercials in their clips, or optional 'click-penny-pay' micropayment (skip commercials at 5 cents a pop), but don't tell them that.
They joke around here is
What does the American Diary Association and media industry have in common?
They both try to milk you for everything you're worth.