I just played around on a Saturday morning, sound is off a bit. I'm not sure I'll spend a lot of time with this tool (I lurve doing the Bollywood stuff and that's much less time consuming).
One thing that's nice about being able to grab youtubes and edit them is when the movie clip you want to use to illustrate a blog post is too long, you can clip it.
For you techies, I'm using Youtube Robot and Windows Movie Maker.
A mashup of the infamous interview and the viral baby video.