Last friday I came across this mobile sofware called Avotmv it plays form sites like My Space,You Tube, CNN and ESPN here is the link to it form the phone browser Avot mV . This is listed as Staff pick solution at Apple's official application list Apple - Web apps - Avot mV
The video quality is great and the user interface is off the hook

I just downloaded it to my iphone and you're right it's user interface is off the hook. see this is why I love technology