You're missing his point. If you wanted to share what you made, all you needed to do was export the .swf file. If I want to share my html5 game with you, there's a shit ton of files I have to upload somewhere.
I don't see anyone talking about the gap in the market and the millions of dollars youtube is putting on the table for some other company (or companies for that matter).
I don't need Youtube to tell me what I should and shouldn't watch. It's not any more complicated than that. If you need someone to tell you what you should or shouldn't be watching, then that's your problem, and they should make a product specifically for you rather than forcing it on everyone that participated in building their product and participating in their business and making them money. This is a total slap in the face. It is amazing to me that there are so many people here discussing why they need Youtube to tell them which videos to watch.