That article doesnt take into count that a large percentage of youtubes 100mill videos a day are streamed on other websites not youtube itself.
Sure, but it has that YouTube watermarked logo. Talk about major branding across the web. It seems to have worked well for them. They are now the 10th most visited site on the web.
http://traffic.alexa.com/graph?w=640&h=480&r=1y&z=&y=r&u=youtube.com/&u=