Important to remember that where Microsoft's strategy is to compete with flash via silverlight, Google's was just to build a new browser and create a better HTM

Important to remember that where Microsoft's strategy is to compete with flash via silverlight, Google's was just to build a new browser and create a better HTML by hiring all the people important in the process and throw its weight behind them. So, yes, youtube is interested in HTML5 video, for the same reason google is interested in Chrome.