Google in Talks to buy YouTube

for a bargain price of $1.6 Billion. Excellent news for the current owners & venture capitalists. For Google, is it a good move or bad?

Good Move
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Google has the cash in the bank, doing nothing.

As News Corp discovered, if you get in before numbers peak, and monetize it, you can earn back more than what you paid for it.

Bad Move
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A lot of the content breaches copyright. Checking the legality of each upload is expensive. It's not like searching Orkut spaces for the word "nazi". Google seem to enjoy pushing the legal boundaries, but this could be the next Napster.

Google Video already has 11% of the market, so whatever they plan to do to improve YouTube, why haven't they done that with Google Video already?