my 3 cents:

youtube is very fast - thanks to rather huge server infrastructure.
Quality is: poststamp. It is clear.

IMHO optimal strategy is:

1)save your video somewhere in full res, with no worries about bitrate/codec
2)put the same on youtube.

So those folks who do not know what codec is can click on youtube. Those folks who want more quality - install vlc and d/l your full version. In near future
you will upload full-res to  some HiDef*tube.com and that is all.

the best

Marcin -  http://www.youtube.com/user/marcin5231

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