That kind of internet ad could create a new type of ad where the first 2 or 3 seconds of the ad need to be extra-interesting to prevent you from skipping over it.

Sure, on TV they still have to make sure you don't change the channel, but you can't usually skip just the ad without missing something, and there's always the chance that you flipped to a channel in the middle of an ad. SO I wonder if this will bring about any noticable difference.

Here's another video inclusion sample, upper right:
fan-sites.org/

But it's kinda broken. I clicked on "www.pepsi.com" during the Pepsi commercial and it opened the Pepsi site in the same little Iframe of the video player... which is of course much too small to display Pepsi.com!

Official Google Blog post on this:

I got 99 problems, but video distribution ain't one
googleblog.blogspot.com/2006/0 ...

Wow, it makes you skip. Maybe it'll change over time.