Playstation 3 recently added a YouTube app to its system. Previously, when you wanted watch YouTube on the PS3, you had to launch the (crappy) PS3 Browser.  While it served its purpose, it's not an easy or elegant way of watching YouTube.  Now, with the new YouTube app, the icon is right there under channels and the design are big/bold boxes with big text (this is nice if you're sitting faraway from the television set, but I found it too large).  It's still very fast and searching is nicely done!  You can personalize it further by signing into your account and subscribing to users and channels.

The key features, as noted by the PS3 blog:

• Search: Finding the videos you want is easier than ever, with search suggestions and instant video results while you type.
• Your subscribed channels: Sign in to find the latest videos from your YouTube subscriptions, which now also includes official music videos.
• Your phone as a remote: With a quick pairing process, you can control YouTube on PS3 with a smartphone. Find a video on your phone and with a button it’ll play on the big screen.
  
• While the video is playing you can control it from the phone, or keep browsing YouTube for the next one.

Once again: PS3 dominates over Xbox. Hands down, I will always recommend the PS3 over the Xbox.  Prices are so cheap right now.  If you shop right, you can probably get a deal for about $200. 

You don't need to be a "gamer" to really appreciate this versatile system.  It is the one box that does it all for me: media streamer, memory card reader (1st Gen PS3; others need add-on), Blu-Ray player (take that Xbox!), gaming system, "Wii-like" add-on with Move controllers, music player, and now "YouTube for the TV."  My only complaint is the PS3 wifi receiver, it's too slow. I'm now hardwired via an ethernet cord; it's like night and day.

NOTE: Xbox has a YouTube app, but you have to pay $80 a year to use it. I seriously don't understand the Xbox fanboys that love paying Microsoft every year (or month), it's like a hidden tax that no one ever brings up. Also, Xbox has really gone downhill because they stop producing original game videos (if they are still doing original Major Nelson videos, I apologize - perhaps they shouldn't hide their videos?)

UPDATE: I tested out the pairing option with an iPod Touch - works flawlessly.  It's rather simple, just go under settings and choose PAIR.  You will get a random generated number.  On your iPod, go to m.youtube.com and under settings, tap on ADD TV.  Type in the YouTube number and name your pair. 

When it's done, you can browse on your iPod and whatever you play on the iPod will go directly on the big screen.  You can also control it with the iPod. Searching is a lot easier with the virtual keyboard.  

I have not tested this on an iPad or a "full computer," but I suspect, it's pretty much along the same line.

UPDATE #2: In order to personalize content, you have to authorize the PS3 to access your Google YouTube account.  This is fairly painless to setup (works just like pairing).  Once I signed in, I ended up subscribing to podcasts and youtube channels that I follow.

I'm somewhat inspired to produce more videos for our music channel, but I probably won't look into it until I get better video recording equipments.