Did what I think just happened just happen?

If this video embed won't play in the blog, but rather takes you to youtube to watch the video by default, then yes, what I think just happened (YouTube stopped allowing embeds to play in the context they are placed it) just happened.

-Then again, if it will play - and it appears it will - then I guess YouTube has done no such thing. I wonder what the deal is with this clip of the Colbert Report at Daily Kos?