said by KrK:
And the majority of the blame would be wrong.
Cheapness on peering, Google is not. Google has been very aggressive in peering and placing of local caching servers at ISP's.
Interesting, do you have an insider source @Google for this specific problem with VZ & Youtube? I didn't want to single anyone out, but the peering suggestion came from a veteran VZ employee (Dave). It's all in the thread.