There is a lot of talk on the net today about a new embedded version of YouTube that allows you to have Adsense attached. So far there is not an actual functioning player to launch this, but obviously it is on the horizon.
But, you can work up your own YouTube custom player and preload it with your Favorites or other channels. I have setup a page to demonstrate. CyberCoder – Custom YouTube.
The information at YouTube is located here.