I've never used the video tag. I'm sure there is more involved than adding <video></video> tags to my page. I'll probably have to do some research to get it working the way I want. "How do I make the play and pause button the way my visual guy designed them" would the first question that would come to mind. I guess the same goes for a Flash based solution.
Quite the opposite. The video -- because it's huge compared to JS, CSS, etc. -- /does/ make sense to host on YouTube. The /player/ does not belong embedded in the page though. Take a screenshot, host that on your own crummy web server, and link to YouTube, ideally with a notice to the effect of "Clicking this link will share your information with YouTube..."
I'm working on an HTML5 video player. The special features that will differentiate it from others are a sharing widget in the video and a gallery that show up when the video ends pushing the user to watch more videos.
I'm one of the developers on the video player used on that page. Great work guys!
Edit: I should add in, the player is primarily Javascript with a small rendering engine for Flash fallback. Even in the Flash case, everything is controlled via JS through a flash bridge. We prioritize HTML5 video when possible across browsers and devices.
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