Update: I got to try viewing this post on an iPad and, sure enough, it allows for the embedded video to play right in the page, much like we see every other video. Very cool!
In this blog post, A New Way To Embed YouTube Videos, YouTube announced testing of new EMBED codes for your video.
The biggest enhancement I see is that this embed will serve up wither Adobe Flash or HTML5 video depending on the users environment. This should make it easier for bloggers to post one video link regardless of the technology their readers might be using.
There are 2 major limitations. First, videos with advertisements must still be played using Flash and, second, anyone using WordPress.com and other platforms that prevent the usage of “iframe” will not be able to use this new method.
Below I have embedded one of my older videos using the new method. I will then go and check it out on my iPhone and in other browsers to see how well it works.