"Video hosting costs money. Micropayments don't work."
Hogwash. Nobody is even trying actual micropayments. Micropayments do work for the right values of "micro" and the right model.
Can you name one? I'm curious.
The only kind I can think of is mobile IAP, and lol at that model being used for YouTube. You can't watch any more videos for today, watch 5 more for $.99!