It looks like Google and Youtube are working hard to bring Youtube to consoles, now PS3 and Wii users might not be that bothered since they have a web browser and can easily watch it there but, this is a great change for Xbox as it doesn’t have a web browser. The reason to be happy about this is because there will be a official Youtube app which means that Youtube will be optimized for the home consoles which could mean new features.(Kinect Youtube Anyone?)
We got all this information from a LinkedIn job listing.
Not only does it say that you will be needed to be “working as a Software Engineer developing the next generation game console.” it also mentions this : “Deliver a compelling lean back experience with monetization and e-commerce offerings (ie, pay-per-stream, ads).” so it seems that ads will be coming with Youtube to the home consoles, the ads will probably only be usable by Youtube partners which is how it works on youtube.com