I agree. what use is higher resolution, when it doesn't work well.
Besides, as some people commented on Slashdot, where the news were also reported; They'd prefer that YouTube used that extra bandwidth on the 1080p setting.
unfortunately youtube is just like every other 'company' nowadays - always trying to be one step ahead and tripping over as they do so.
the abc here (our national broadcaster) is about to launch a 24hr news channel. they've got an (excellent) radio channel, but content is endless repeated, and since there's no budget for non-metro reporters, everything is city centric and of little interest outside of the state capitals.
youtube, as has been pointed out, can't even handle it's 720p content reliably, so why bother, other than to appear cutting edge....