Hi,
the only option for getting Youtube native app to work is:
1. Jailbreak
2. install Cydia
3. install TubeFixer for iOS form IPG's repo
4. install YouTube Fix #1 from Heaven iPhone repo
Then the old Youtube application works again .. If not, try YouTube Fix #2 or YouTube #3 from Heaven iPhone repo.
For me Fix#1 working.
I think it will no longer be possible to watch Youtube via Safari on iPad1 :-(
R.