More competition is good, I'm glad that YouTube is getting into this market, and I'm glad that they didn't end up buying Twitch. A few months back I was disappointed that Amazon bought Twitch. My tune has changed because Google didn't just give up, they have decided to compete with Twitch head to head. Don't get me wrong, I love Twitch, I watch Twitch streams all the time. I watch people gaming on YouTube all the time as well. I was happy that there was going to be a marriage between these two things, but now I'm happy because when there is competition there will be innovation.
Right now Twitch is the proverbial 600 pound gorilla in the space of live streaming video games. Steam seemed to think they could do something about it. They made a super simple way to stream, in fact you don't have to do anything other than turn it on once. Then its all up to the viewer. The problem is Valve seems to have forgotten about it. Since turning it on they have only issued bug fixes to it, no new features. While its super easy and viewers can chat with a streamer in game, without thier text being pushed to the stream. Discoverabilty is terrible. It doesn't have a way to say HEY EVERYONE I'M STREAMING X RIGHT NOW, without 58 steps. So no one uses it.
What YouTube needs to do is make sure that their streams are as discoverable as Twtich streams, and as dead easy to set up as Steam Broadcasting. They also need to integrate social media into the interface in some way, because that's something that neither do without extra work from the streamer. I'd like to see a program that I can download from YouTube (not some 3rd party stuff) that lets me click one button, and the system does all the other work for me. It picks the best resolution based on my hardware and bandwidth, tweets out that I'm playing, and integrates social media so if someone wants to talk to me on there they can do so in game, through YouTube chat, or Twitter, Facebook or whatever social media I decide to use.