Google has just announced the first step in integrating Google Video with newly acquired YouTube.
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 you click on YouTube thumbnails, you 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 you can search for the world’s online video content, irrespective of where it may be hosted.
Reading between the lines, I see no mention that Google Video will continue to encourage upload of video content, only that it will become a service “where you can search for the world’s online video content.” That suggests to me that YouTube will become the designated “host” and content provider for video content, while Google Video focuses on what it does best, searching for videos.