@baqai
Steaming does break if you have problem with your connection though it will show up as fully loaded.
Some people likes to have a collection of videos not just to watch and move on, or they will have to go through a certain process to download a video from youtube and that will be in .flv format.
flv video are compressed videos so they take less size and loads quickly having more length. They lack in quality.
@Libra
I agree @adam86, since youtube is famous and have a large collection of videos on almost everyhting you can search for, making a seperate section does make a sense. Keeping downloadable .wmv, .mp4, .rm etc should be in a seperate section. And please also make a seperate section for Non-wheels videos