Lordy knows what exactly has been updated with YouTube's dedicated video client, but it jumped from v2.0.2 to v2.0.9 sometime...recently.

One obvious and welcome change is program compatibility – finally – with 320x320 devices (before it would rotate and crash on Treos), so that's pretty cool. We also imagine they've improved their streaming codecs and optimized the app a little. 

So if you had some problems back when it debuted, you may want to take another chance: https://www.youtube.com/?app=desktop