Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Also if you select the stream option it will stream in the same way as the official youtube app, but if you select the download option, you can then choose to stream instead but you get to select high(wifi)/low(edge). The high option works perfectly over 3G. (assuming 3g doesnt suck in your area)
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.