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I think they may be shooting themselves in the foot if they try to keep promoting competing services...
It'll be interesting to see which way they go - move them apart, so GV has its own niche, while YouTube does the popular stuff - or bring them closer, so they can eventually be merged.
However they manage it, unless they end up with 100% separate markets, I can't see GV lasting two years.
The fact that Google Video also allows for pay-per-view videos may also indicate future direction.
However, with Google's main function being search, I can also see YouTube videos cropping up when you do a search on Google Video. Branding Google Video as a more of a search tool could be the way it goes.
From the YouTube blog:
you won't have to start paying for videos and YouTube won't be replaced with Google video. We aren't going anywhere.
Whatever happens, I expect to see some sort of indication of direction well within 2 years...