How to View Embedded YouTube for iPhone

How to View embedded YouTube for iPhone. We might know the iPhone can playback H.264-encoded YouTube content through the YouTube application, but the device’s Safari browser cannot pick up and display embedded YouTube content.

When it encounters embedded YouTube media, MobileSafari simply displays a blue question mark, indicative of unrecognized media. Unlike Google Maps content, which is routed through to the Google Maps application, embedded YouTube content simply cannot be viewed in any fashion (by default) on the iPhone. This is one of the most frustrating aspects of browsing the Web on the iPhone.

Here's step by step to do:
1. Drag the bookmarklet to your Safari's bookmark bar (or visit Joe Maller's page for instructions on how to do this straight from your iPhone).
2. Sync Safari’s bookmarks to your iPhone through iTunes (under the ‘Info’ tab)
3. Use your iPhone to find a webpage with embedded youtube content (try Joe's page).
4. Bring up your bookmarks and hit up "iTransmogrify!"
5. After a few moments, you'll see the embedded YouTube video screenshot appear on the screen.
6. Hit the video and your Safari browser will take you to the iPhone's YouTube player
7. Start the video. That's it.

(source)