YouTube Widget allows you to search and play videos from YouTube. All you have to do is simply type in what you're looking for, and click on the video to view it within the widget. The video opens in a new widget window, which is resizeable.
Your default screen can be set in the preferences to show several different categories. From Just Added to Most Discussed, you can see the headlining videos right on your dashboard.
It's up to you! Let me know what you want and what you don't, I'll take care of the rest!