That transition did not seem very positive for Google, although maybe the new app lets them monetize better; I'd be interested in hearing more detail about the various aspects of this deal. (I see what the massive theme community from Cydia cares about being themed, and while I insist that featured themes theme the YouTube icon, the feedback I get is that very few people actually bother to install the app now that it is separate. As for the website, it was the case that you could view YouTube's content from the website since at least the era of iPhoneOS 2.) I thereby would have assumed that the situation went in the other direction: Apple chose not to renew their license for YouTube, as they no longer felt it gave them enough value for the cost.