Not true.

I'm able to actually play a 720x480 video with fairly good results.

Anyway, ever since late September of last year, m.youtube.com has slowly been degrading.

The features which have been removed over this time are searching for videos that were most viewed, favorited, and discussed.

youtube.com/xl was suddenly dropped.

They also have removed categories of Education, Music, News, and Sports.

As of today, there is no longer a mobile site for Youtube.

I guess it's time to finally start looking for a newer tablet.