With Apple's latest announcement, YouTube videos are currently available on the Apple TV and will also be on the upcoming iPhone when it's released. We fired up our Apple TV, downloaded and installed the update, then took it for a spin.
The initial download took a little over 5 minutes for us.
Searching for videos is done by selecting letters on the onscreen keyboard. It's definitely the biggest limiting factor of bringing the YouTube experience to your couch, as it gets a little tedious if you want to type in something specific like "presidential debates." Luckily, the results page updates as you're typing, so you often don't have to type in your whole search phrase. Still, there's no denying that we'd love the ability to grab a wireless keyboard and go to town.
To use the Favorites function, you'll need to be logged in to your YouTube account. You'll also have access to the Favorites you've saved via YouTube on the Internet, but they might not all show up because not every YouTube video has been converted to the Apple-friendly h.264 format. For example, we couldn't view any of our favorite CNET TV videos on YouTube via the Apple TV.