Google Video failed because it created a bunch of users - I still regularly check out the engedu videos from the Google Lecture series.
But YouTube created a community; people could rate, talk about and respond to videos.
YouTube did not beat Google video on the quality of the video, rather it was the interaction between the creator and and viewer.
If we look at the future of entertainment, then television better beware. The most non-interactive medium ever is big trouble from a lot of different fronts. Television high-quality video presented a one-way experience. YouTube is a bad video with a lot of participation.