With the Google name behind it, a completely new venture in competition to youtube would probably cost no more than $5 million to have started and be at 50,000 videos real quick. They could have used something like GooView or whatever -- it's already suggested in this thread that the name is irrelevant.
I can't understand a deal with a bank where a bank gets shares on the basis of funding. I don't think that would fly with the banking authorities here in the UK.
Of course, a lot depends on what class of stock Google gave to YouTube. Was it a rights issue; new issue, or unissued stock? If it's from anything but their own holdings or unissued stock, then the shareholders will have paid for the acquisition by virtue of dilution -- if it makes a profit over and above any dilution factor, then the stockholders will be happy. If it doesn't, then it will have been a bad move.
I bet the two guys are locked into a tight agreement not to sell those shares in the market too quickly.
My take: Google should have done it themselves, or paid a sensible price.