Tip: YouTube displays low-quality video by default; if you want your viewer to see high-quality video, add &fmt=18 to the end of the URL when you send it to them.Likewise, here is a link to explain how to get the higher quality in an embedded video. The video below is the same one I had embedded in the Google Presentation yesterday, but it is a lot sharper in view.
Blip.tv does this without all all the bother. But I know some folks don't want to put video content elsewhere than YouTube for fear that the provider will go under. Those fears might be self-fulfilling.