Update: Now that the new OS is out I had a chance to test the YouTube iOS app. It may look okay on the iPhone but this definitely does not look good on a iPad. Until an iPad optimized version comes out I would recommend surfing to YouTube on the browser and then adding a bookmark to this site on your Home Screen.
As was reported in August, Apple decided to remove the native YouTube app in iOS 6. Just in time for the expected release of the new OS and accompanying new iPhone, Google has released a standalone YouTube app for the iPhone. Some features of the new app include: easier search functionality with voice and query autocomplete; facilitated channel subscription with the channel guide UI; ability to read comments, browse related videos while watching a video; and easier sharing to Google+, E-mail and Facebook. One downside of the new app is that it now features advertising, something that wasn’t present on the previous version. The iPad optimized version is expected within the coming months.
Source: iPhone in Canada