Absolutely. And it has to do with Google's crummy means of advertising through YouTube. When watching a video, who wants to click on a preview video? Who wants to click on the banner ad on the right side? People want to simply watch the video, MAYBE watch a second on the right-hand side, and then leave.
Also, embedded YouTube videos on 3rd party websites don't have commercials to click on (not that anyone would do so), so that's lost revenue there.
I have one video with over 30,000 hits and haven't earned a penny yet.