With firmware 2.0 Safari now supports embedded YouTube videos. The videos don’t actually play in the browser, but it does show a thumbnail of the video and when you tap on it you can watch the video full screen. Another nice thing is when you tap done on the video it goes right back to the Safari page you were on. For some reason the thumbnails don’t always appear on all websites but the button to play is still there.
NOTE: For those of you on older firmware, don’t worry. We will still be putting the link to watch from your iPhone or iPod Touch in our articles.