Google Video will be the cheap, search-engine driven content & results. YouTube will be the content-rich site for longer content & higher advertising revenue. Nothing extraordinary about their plans.
What i'd like to see on GooTube is longer content by the Directors & keep very short videos on Google Video. That would tie in well to the search engine. They could (i know that nobody will like this) insert ads into the videos when you go to Google to do a search. But doing that on GooTube would be a huge mistake. Most people are not ready for that.

I agree. And I hope they keep the adds off youtube.