I don't get it: this seems to be an issue where YouTube is blocking 3rd-party client access from datacenter IPs. Why would you want to do that in the first place? Wouldn't you normally run a YouTube client from home (or wherever you happen to be at the moment, which for most people isn't a datacenter)?

FWIW, SmartTube works just fine for me. Of course, I'm running it on my TV at home, not in a datacenter...