Mathew, I don't think this is meant to compete against YouTube.
Most cameras (and phones) shoot photos and videos. How lame is it right now that to share my vacation photos/videos with people, I have to upload them to separate sites?
I'm guessing the usage is a little more exclusive. If I want the world to see my videos, yes I would post them on YT. I would use Flickr to display photos/videos that only my friends and family can access.