For one, this "idea" is not new. SM made a TSC youtube group months ago and it didn't really hit off. Many people joined, but it was just an overall mediocre situation. Not really a bad idea, it just wasn't that hot.
Anyway, as to whether youtube promotes us or lowers our level of standard is a pretty stupid quesiton to me. The whole point of the internet is that it brings people from all over the globe together into a community. OF course, youtube is full of the 4 minute burping 8 year olds and low on the quality stuff. However, there are people that genuinely look to see the quality stuff. If TSC videos are posted on YouTube, it promotes the playing ability of the group and eventually recruits good players (like previously mentioned Judgement). The downside to this is that it also invites the plenty of others who haven't played a sonic game in their life.
Anyway, Youtube and web 2.0 in general provide a way for amateurs to thrive and eventually become professionals. Allowing the best of TSC to be displayed and inviting those with similar skill levels will be good for the community.
I do think, however, that there are those obvious downsides and it depends as to whether or not one wants to invite the crap to TSC or not. I know I wasn't great when I started (I stil aren't >_>), yet I quickly got better. I wasn't obnoxious and egotistical, though, and I know plenty of those will come from Youtube. I think a great idea would be to post the youtube accounts, but not -advertise- that we are from TSC. This way, clickhappy idiots won't end up joining for the hell of it. If some one genually inquires via private message and seems nice, go ahead and give them the address.
(only five vids heh)