Vita does not support flash, and because of that, doesn't support YouTube in the browser. There is supposed to be a YouTube app in the works, but I don't know when it will be released. Hope this helps.
They also said that they are improving the browser so maybe next firmware you can watch.
I wont be surprised , the browser actually works very well for me it just needs to load the pages faster(When Scrolling up and down) and they need to add in HTML5.
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it is html 5 cuase adobe doesn't make support for mobile devices anymore......the ghost of steve just got 700 ppl fired. http://money.cnn.com/2011/11/10/technology/adobe_f
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