I disagree with this entirely. I personally loathed being booted out of Safari (and other apps) and into the YouTube app. I hate the fact that it used up an icon space on my Springboard. I always felt Google’s mobile HTML5 offering was far, far better than the app.
This is a huge win for consumers, in my opinion: they will get a better, more up to date YouTube app that is consistent with YouTube on desktop and less obstructive to their browsing. Consumers will also benefit from a regularly updated YouTube app (finally!), just like they’ll benefit from a regularly updated standalone Google Maps app on iOS if they don’t want to use Apple Maps.
This is also a win (as many have pointed out) for Google, who can now put their ads into YouTube on iOS.
…and finally it’s a win for Apple, who can continue to move away from Google.
Good for everyone. Yippee. I for one, am very happy.