A little update.
I deleted the YouTube app and re-installed it from the Google Play store. It now works with Chromecast. In fact, it worked so well that even though I didn't have the TV source set to the Chromecast,as soon as I tapped the icon in YouTube the TV auto switched to Chromecast and began to play the video. So it should also work with a rooted regular Kindle Fire.
Hurray!
Next, I'll try re-installing Netflix.
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