It seems there really was a 12 mystery app on the iPhone’s home screen. Turns out, it’s YouTube. There’s a little video demo of it up on Apple’s website. All in all, it looks slick and will retain most of the main site’s features like ratings and bookmarking videos. Of course this means there’s a flash player somewhere right? Wrong.

If you recall, when it was announced Apple TV would be getting YouTube, also mentioned was all YouTube videos would be reincoded into the H.264 codec. This not only makes for higher quality videos at smaller files, it also means that source file can be streamed into an external app that supports the H.264 codec. In this case, it would be some variant of Quicktime built into the iPhone I’m sure.

Of course it’s free and it’s nice to know it’ll be ready for the iPhone’s launch on June 29th.