I don't have a problem with embedded videos. I'd like it if we could keep them - I saw the one half baked cat posted, and my immediate reaction was, "Oh my god we can embed videos now! Yay!"
But at the same time, I understand loading issues. Still, I don't think we should ban the option because somebody at some point might abuse it. An option to toggle embedding on and off in the User CP would be a great compromise.