First it was the LG with built-in Google applications, today is a phone optimized for YouTube. LG announced today that they have signed an agreement with the company and will unveil it this year in Europe, probably before Apple releases the JesusPhone. However, the LG won't be just a YouTube client.
It will allow users not only to watch videos but also record and share them with other YouTubers, definitely a winner for true fans of the movie site. We don't know if it will use Flash-based video or H.264, but looking at the fact that it allows to record your own stuff (and probably uses that format for that) it will probably use it for decoding as well.
LG and YouTube sign agreement to team up [Pocket Link]