Not sure why, I've upped a video with no compression at all on the audio, letting the YouTubing be the only lossy layer and the quality is basically the same, so unless there is a magic spot to hit with whatever compression type they use where it doesn't get recompressed, I don't think it can be improved. I got a better quality end result on YT a few years ago but I don't remember what settings I used, I think they changed things on their end. Or maybe they give certain members higher quality now? I don't know. Anyway, here's a video I made with a friend a couple of years ago, pretty good I think:
http://www.youtube.com/watch?v=8HgA4doYvF8
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Doesn't look like I'll be able to get better audio...
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