YouTube has finally, finally, done something about their low-grade 176 by 144 pixel mobile video interface. For Flash Lite 3-compatible phones (which means most S60 phones made in the last couple of years, provided firmware is kept recent), videos are now served up from the mobile YouTube interface in Flash format. Once the video starts playing, you tap to bring it up full screen in Flash Lite's video player. Most significantly, the quality's miles better than the original QCIF version - 480 by 320 pixels for many videos. Screenshots and links below.
Go to m.youtube.com in S60 Web to try out YouTube Mobile.
Here are some screenshots of YouTube Mobile in action on the Nokia 5800, showing the new video quality.