At last YouTube app has been updated to version 2.0 that brings full iOS 4.x support for jailbroken iOS devices including the support for iPhone 4 Retina Display and iPad.You can not only download YouTube videos on your iPhone,iPad and iPod touch but also import all your downloaded video in iPod app seamlessly.
This application is available in cydia.
YouTube 2.0 is newly re-designed for iOS 4. It includes a host of stability fixes, improved memory management, improved download speeds, and fixes for the nasty iOS 4 sandbox. And don’t forget the ability to import your downloaded videos into the iPod library.
DISCLAIMER: This article is for information purposes only. Downloading videos from YouTube is not supported by the YouTube Terms of Service.