Suggestion:
This is a known problem and should be fixed with the next firmware update.
Edit:
If you visit YouTube.com on your PlayStation 3, videos will not load and a "Go Upgrade" link is displayed instead.
This can be resolved by visiting the PS3 version of YouTube.com, which is YouTube XL. However YouTube Xl has a lot of bugs, including the bug that the asker is experiencing.
This is a known problem, and was caused both by YouTube's latest update as well as Sony's latest firmware update.
I am sure both YouTube and Sony are working on a fix, but until they do you can simply browse YouTube on your computer.
-Wiiplay_ds.

{ 3 comments… read them below or add one }
this is a rescent change to the you tube web site. go to you tube xl or http://www.ps3youtube.com to watch you tube normally on the ps3.
Solution, use a computer.
Call Sony. Or buy a xbox.
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