As far as Microsoft not delivering on Internet Services. I guess it depends on what an internet service is.
Personally, I think SoapBox is a well-executed video sharing site. I think it performs better than YouTube and the UI is nicer than YouTube. YouTube is functional.
In fact, as much as it smacks of corporate nepotism and NIH syndrome, I'd suggest creating a Channel 9 channel on Soapbox and uploading the content there, as well as using the Soapbox embedded player on here.