Even though you can no longer upload videos to Google Video, the service hasn't been abandoned and it's still actively developed. The focus has been switched to video search and Google Video powers YouTube Search.
I still think that disabling the uploads to Google Video was a mistake: probably the most useful videos hosted by Google Video are longer than 10 minutes and couldn't be uploaded to YouTube. You can't upload Charlie Chaplin's "The Kid" to YouTube without splitting it.
To make the transition to YouTube easier, Google redesigned Google Video, removed some features that were rarely used and made the video player smaller.