Not only are video results increasingly common in Google's search results, but your videos stand a much better chance than your text pages of being shown on the first results page. On the keywords for which Google offers video results, we found an average of 16,000 videos vying to appear on results pages containing an average of 1.5 video results -- giving each video about an 11,000-to-1 chance of making it onto the first page of results
Getting a video onto page one is less likely to get a conversion than getting a regular page onto page one. Not everyone's video is as successful as "will it blend" has been when it comes to growing sales.
I'm all for intelligent use of video, but not just for getting traffic - it needs to be part of a well planned strategy. Otherwise it's just info-tainment.
They're missing the major trend by remaining stuck in the old paradigm of search. Blended video is not the future. The video portal itself is the future [webmasterworld.com]. There are more searches done on YouTube itself than on Yahoo, making YouTube the second leading search engine.