I live in Virginia and this has been an ongoing frustration for me. This latest Youtube deadzone started on Friday night for me, but this isn't the first time this has happened. This is 2013, we shouldn't have to put up with this terrible garbage.
I tried using Google's public DNS servers, but that made no difference.
They either need to fix this problem or I am cancelling my service, contract be damned. I will hand over my termination fee with a smile on my face. There are other ISPs who aren't having youtube problems.
I'm also disgusted with Verizon's attempt to destroy Net Neutrality. http://arstechnica.com/tech-policy/2013/09/verizons-bid-to-kill-network-neutrality-law-goes-to-court-monday/
If that law gets struck down, us consumers are going to be in for some terrible internet service. Even worse than we are currently dealing with.
Edit: I just finished I live chat with a Verizon tech. They place the blame on the content providers, saying they aren't allowing enough connections from Verizon and the existing connections are saturated. Not sure if I believed him, but he did provide me with an unofficial workaround.
He suggested that I use Ninja Proxy (http://www.theninjaproxy.com/) to view youtube videos. I was surprised to see them giving this as a workaround, but I'll take what I can get. I haven't had a chance to test it yet, because its so late. Let me know if this helps you guys out.