Motorola has been working with Google to get this issue resolved. Apparently Google made a change and now youtube video's won't play. I think this has been an issue for about a month now. Google has been really slow lately in responding to a variety of issues. We're doing what we can to put pressure on them to resolve.
It's crazy how it worked and now doesn't. It's also crazy how developers are so quick to leave older technology behind. My motorola i1, purchased in 2011, runs android 1.5 cupcake, and now it's hard to find apps that will run on it. Although youtube once ran on it, I not holding my breath waiting for it to become compatible again. I'll just continue living m life without Angry Birds or Temple Run if it is ever really released for Android.
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