YouTube is now offering the option of watching the high quality videos. It doesn't mean that all the videos will be shown on higher quality, it just depends on the strength of the library. This option is available for everybody who has signed up as user on YouTube.
You can watch these videos by simply choosing "never show me higher quality" or "always show me higher quality when available" only if you have got a fast internet connection otherwise you'll find it slow.
Further more, the videos in higher quality also give you an option to watch in either normal or higher quality mode.
However, there are some limitations with videos' file size which can only be upto 1GB and they can't be longer than 10 minutes.
Anyway, a good change! So enjoy. =)
Source: InformationWeek
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