VLC 1.1.x accepts youtube urls in its “Open Network Stream…” dialog.
It’ll opt for the highest resolution available, so if you want to force a less taxing quality, add this to your url.
http://www.youtube.com/watch?v=yadda&fmt=5
This means you can save it to a file without a separate downloader tool/site. And/or you can watch at 2x speed or crank up the volume to 400% with the mouse wheel. Unless you save before watching, it’s subject to buffering, so seeking is best avoided.
It relies on an external script to scrape the page and fetch the video. That’s what needs fixing when youtube’s site changes.
VLC_Dir\App\vlc\lua\playlist\youtube.lua
Judging from the dir listing, several other sites are understood too.