Google Video and YouTube integration

This morning, YouTube was under maintenance and many functions were disabled. Now we know why. Since Google acquired YouTube in November 2007, there has been no sign of integration between the two companies. However, Google finally release its plans to how it is going to make full use of the Internet's most popular video sharing site. Here is how:

All YouTube videos will be included in the Google Video index (in other words it is searchable in Google Video). This migration of index includes all description and ratings (maybe tags). Yet Google hasn't mention anything about ranking the videos. Will YouTube videos come first or only the impression and rating counts?
Google has made a hint in its Press Release by mentioning the testing of video ads with AdSense publishers that YouTube will soon display video ads by Google (most likely similar to Google Video where ads are inserted either at the very back of the video or in the middle like TV commercials (which is of course very annoying).

This made clear that Google will still concentrate on its search technology while the YouTube focuses on innovations with online video sharing (there are a few experimental products in TestTube, the YouTube labs)

Added thought: Google Video has a dedicate video player allowing users to save videos and view them later (yet requires Internet connection). Now that YouTube and Google Video shares index, would it be possible to view YouTube videos in Google Video Player in the future?