This is one of the most evil implementations of video embedding i've ever seen.
"G. if you use the YouTube Player on your website may not modify, build upon or block any portion or functionality of the YouTube Player including but not limited to links back to the Website;"
i think the main side effect is if you accidentally click the video, it stops, which ruins the illusion of a continuous live stream (like television), but that's the tradeoff at the moment i guess ever since the old embed api was deprecated.