YouTube, this is idiotic. Here's why:
1. It's too narrow.
I can only download videos in MP4 format. What about MOV? AVI? FLV?
2. It's too late.
Is YouTube somehow oblivious to the existence of hundreds of websites that already do this? Here are just a few websites that let you download a YouTube file:
3. 99 cents? Are you kidding me?
First off, all the websites I list above are free to use. Second, who pays a dollar for media anymore? Movies are pirated, music is internally recorded, and YouTube videos can be downloaded in a bazillion other ways.
I can hardly see anyone paying for YouTube videos anytime soon. YouTube, go back to ads. This won't work.