YouTube will be adding another ferature which should be very useful for educators, being able to show thumbnails will be ideal for developing digital story telling, review, questioning and predictive activities. 

Amit Agarwal writes:


"The next version of YouTube video player will have one very useful feature – you can hover your mouse to any point in the video, without actually moving the playhead, and the YouTube player will show you an image thumbnail of the video frame at the position.


Thus you can easily get a visual gist of the whole video while the clip is still buffering.


I recorded a screencast video and that should give you a better idea of this new feature."


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Via Robin Good