I have been adding a couple of good videos for my ninche market that I found on youtube. I this bad for you site in any way besides giving away a link?
It's not really bad, but you should have other content on there other than videos (unless its a vlog.) If the video would interest/help your visitors then you should add it.
YouTube embeds are good if they keep your visitors hanging around for longer. On the downside YouTube are removing a lot of videos nowadays because of copyright violations - you could end up with dead videos.
If you're uploading videos yourself I'd definately reccomend revver as it's a much more professional outlet as well as profiting of the tiny cpc ads.
Just keep in mind that you shouldn't have too many videos all on one page. For instance, if you currently display like 5 posts on the frontpage, then 5 videos may slow down your load time.
I use You Tube Videos quite a bit. Since they are music videos, rarely do I get one removed, but it does happen. I think it ads a necessary aspect to any blog about entertainment, or music. Just words would be incredibly boring.
As long as it adds something valuable for your readers and doesn't slow your site down then definitely go for it.
I always do a full write up on the video so that I can get my keywords in. I was more worried about the linkage
Its a very good idea and you should do it as it adds a lot of value to your site making it more useful for visitors. Also if you send any clicks to YouTube then you actually get listed on that video's page on YouTube with a link to your site. That usually balances traffic loss if you are a small site.