That was all part of the business plan though - there was a light at the end of the tunnel, and they knew what it was. Whereas I don't think anyone knows how to make money off of YouTube.
"In June 2008 a Forbes magazine article projected the 2008 revenue at US$200 million, noting progress in advertising sales."
We know two things for sure: a) youtube IS making money b) youtube is making money in tens of millions.
What we don't know--and what makes the argument that YouTube is a financial burden on google very difficult to prove--is the knowledge of YouTube's expenses.