Apple has confirmed that when iOS6 arrives, the native Youtube app will disappear. It’ll be replaced by an optional app from the App store.
“Our license to include the YouTube app in iOS has ended, customers can use YouTube in the Safari browser and Google is working on a new YouTube app to be on the App Store,” the company said. – Ars Technica
Good! The current app is pretty useless. It randomly stops buffering regardless of connection; its uglier than the mobile view in Safari and it struggles with a large number of subscriptions.
I don’t think it will be missed.