Mac OS X only: Freeware application TubeTV downloads YouTube videos and converts the video for consumption on Apple TVs, iPods, and iPhones. Just search for a video on YouTube using TubeTV's search box (or grab a link from a video currently playing in Firefox), then click the Save button. TubeTV will proceed to download and convert the video, but (for some reason) stops short of adding it to your iTunes library. Add it yourself and you're ready to sync to your device of choice. TubeTV is similar to previously mentioned PodTube, but PodTube looks to have gone shareware. Windows users, check out iTube (renamed Ares Tube). TubeTV is a free download, Mac OS X only.
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