Update: TinyTube has been taken down…
“We want to maintain a good working relationship with YouTube, so when a Senior Manager at YouTube contacted us about Terms of Service violations we took the YouTube content offline. This happened at 10am GMT-8 today Dec,02,2006.”
Looks like tinytube is down until the lawyers get done sucking the throats of those involved...
It seems clear that the "terms of service violations" are not the real point. YouTube has always been happy to have sites all over the Web embed their videos. But TinyTube was taken down a day after YouTube announced a deal for mobile content with Verizon.
It's unfortunate that YouTube is blowing their philosophy of life because of the Verizon deal. Hopefully they'll see through the problem and TinyTube will be back. Maybe a small Verizon add at the bottom of every TinyTube page? I bet that would solve the "terms of service violations."