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Google search results already include links to content that's hosted on YouTube. Starting today, YouTube video results will appear in the Google Video search index: when users click on YouTube thumbnails, they will be taken to YouTube.com to experience the videos. Over time, Google Video will become even more comprehensive as it evolves into a service where users can search for the world's online video content, irrespective of where it may be hosted.
Google also announced that YouTube will remain an independent subsidiary of Google and that Google would continue to provide search and monetization platforms to the online video king. In terms of monetization, Google's plans are quite ambitious. The company said that they "envision most user-generated and premium video content being hosted on YouTube," which clearly suggests that the Google Video storefront will eventually give way to YouTube.
As Google provides search technology for MySpace, I wonder how long it will be before we can expect to find their videos on Google Video Search too?