well no they couldn't just go in from the browser because that would require the iphone to have flash, and without the native youtube application on the iphone, ipod, and ipad there would be no way to view the youtube videos. In terms of the FCC stepping in, there would be no grounds to step in on, in no way does it violate the monopolization law, or the Anti-Competitive Regulatory Laws so i don't think so.
not going to make excuses, just using a low quality mic (its from rock band), broke the microphone port on my laptop so hehe. Anywho, i mean just on the iphone, ipad, and ipod. Well considering the recent attacks apple is making at google's android, wouldn't not being able to play youtube videos be something that would draw people away from the iphone. Would give android a huge boost.