If YouTube has stopped working, try clearing your cookies.
Initially I was able to play YouTube videos from the stock browser--but it stopped working after I logged into YouTube. Clicking on any video would result in the spinning circle for about a minute, then the "Sorry, this video could not be played" error message.
I found that clearing the cookies--Browser, Settings, "Clear all cookie data"--fixed the problem.
My guess as to what's happening: YouTube provides video in a variety of formats, and I think it does some negotiation with your browser to figure out what format to send. For some reason the cookies are causing the negotiation to fail.
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