Google, King of Misdirection
A number of things come to mind:
YouTube is the #2 search engine in the world, that makes it Google's second most valuable property. More searches are conducted on YouTube than Bing or Yahoo.
Second, YouTube is now a social network, run by the Google Friend Connect engine. That makes if doubly valuable.
Third, Google has more server data centers than Microsoft and Yahoo put together. Many can say the fiber optic pipes cost them Millions, but Facebook makes no money at all. They really do lose $75 Million a year. Digg is not in much better shape, one of FB's main properties using Facebook Connect.
The Google OS will drive even more users into Google Apps, like Gmail where they display AdWords ads just like Google Friend Connect is. I personally have added a few thousand users to Gmail by pushing GFC on my marketing blogs.
In the end Google will win out, they can just wait for the competition to go broke.