This is a great idea.
I installed it on a WP3.4.1 multisite installation but could not get a youtube video to display.
I am actually more interested in supporting the customization of the plugin so that it can display videos from our custom video site.
The embed code from our site is as follows:
"<iframe src="http://www.soobahkdoinstitute.com/v/1313" frameborder="0" style="width:450px;height:338px;border:none;"></iframe>"
Is this customization something a nice size donation could make feasible?