Much like the way Safari has handled Quicktime videos on former versions of the firmware, the new 2.0 release now allows you to watch embedded YouTube content with your iPhone or iPod Touch, albeit via the YouTube app. Navigate to a page with embedded YouTube content and press play, then watch as Safari hands off the video duties to the YouTube player which then plays the video in H.264. Really, that's better than watching it embedded, and makes the handheld Web browsing world that much closer to its desktop rival.
iPhone 2.0 Tips: Safari Now Plays Embedded YouTube Clips
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