Apple isn’t making waves about it at all. Merely stating that “Our license to include the YouTube app in iOS has ended.†Adding on, “Google is working on a new YouTube app to be on the App Store.†Not that the removal of pre-installed Google apps from their devices is anything to be all that up in arms about. With their statement, it is possible that their licence is up and Google felt it would be better to offer an app via iTunes for better updates and control. It also eliminates a bit of bloatware for those that don’t use YouTube on their phones to begin with.
So while this story will get blown completely out of proportion all across the web, it really isn’t an end-all-be-all issue.
Source: AndroidandMe