Windows Phone 7 does not support online video, because it doesn't support Flash or HTML5 video, but now it seems that you can view YouTube video with some sort of YouTube application.
Earlier this week, a former Microsoft programmer posted a tweet with a picture shown as collage of "Windows Phone 7 Marketplace testing applications icons and names." The photo reveals that the upcoming Microsoft Phone 7 will offer different game and productivity applications, and one of these applications is labeled 'YouTube', one is labeled 'Yelp'. Just as the below picture shown:
Picture
However, the 'YouTube' labeled application is also labeled 'Music Hub Add-On', which may mean that it's not an independent application, but rather an addon of the Windows Phone 7 Music hub, so you can add YouTube content to the existing Music hub.
Other testing applications in the collage photo include a few games, weather tool, RSS reader, stock tool, shopping list, etc.
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