Some initial thoughts:
Videos don't include Adword-heavy SERPs. How will that work?
Also, penalties will go unnoticed, unless they get more draconian.
SEOs will get less upset by the inclusion of Universal Google Advertising (AKA Universal Search)
Google will suffer near-instant revenue loss from ad-blindness. How many sites do you load up with your finger on the scroll-button, ready to go straight to the content? Add Google to that list.