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Seems like a less polished version of the kind of shows we facilitate on http://www.vokle.com .

For an example of the kind of interaction we allow for http://www.vokle.com/events/19937-its-going-down

But of course this tech is built into YouTube, the most popular video streaming site on the internet. It pretty much automatically becomes a mass market tool.
I've been watching people up/down vote this comment. I don't see the controversy here, I gave an opinion, perhaps the fact that I'm biased is the issue, but I hardly see why that deserves a downvote.
The title I find a little misleading. The term 'embrace' implies it was a free will decision on Youtube's part. Considering they are just a Google division I would think "Google adds Hangout support to Youtube" would be technically more accurate. Then again perhaps I'm just being picky and semantic in which case ignore me :)
This is to be expected, I think it's good that Google isn't doing what companies like Yahoo are doing and rivalling their own products or releasing a half hearted integration between products. Google is linking all of their services neatly and much like you can use the YouTube Player on Google+ this is interesting.

I will also say that YouTube have had a 'streams' feature in TestTube since 2007 which let you line up videos and chat and in a way was Turntable.fm or this feature in Google hangouts before either. They simply scrapped the rivalling YouTube product which failed to reach a level of success and replaced it with another Google tool which is more powerful.

Google owns YouTube. YouTube isn't "embracing" it; Google is adding the feature to YouTube.