I don't think so.
What I heard was that using YouTube as an IFRAME player wasn't as good for SEO as using the <embed / object> code because the IFRAME code has less keywords in it (none in fact) whereas the <embed> code does,
I don't see how an IFRAME can be bad for SEO, just not AS GOOD as other alternatives if available. IFRAMEs are used all the time on pages that people never know.
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