I just came across an amazing use of You Tube. A man known as Kutiman put together an entire album of song made completely from You Tube videos. The end result is a pretty amazing funk/jazz/hip-hop/world fusion piece. I'm not sure how long it took for this guy to put together 7 full songs, but it's really amazing. At this point I'm so flabbergasted by how the songs were generated, I can't say how well the songs would stand completely on their own. However, it reminds me quite a bit of early Herbie Hancock (like Headhunters days) and Weather Report—so I definitely think it's something I would have listened to without knowing how the songs were put together.
Anyway, if you want to listen to the album all the way through, go directly to Kutiman's ThruYOU page—which will play the videos one after another. In the meantime, here's a sample: