The answer, fortunately, is ‘no’. YouTube has simply moved the embed button from its videos to a less obvious spot. The change apparently happened yesterday and it doesn’t seem like they told anybody about the interface change.
Previously, the button was located on the same line as the like/dislike buttons and the number of views a video has had but it is no longer to be found there. Instead, if you click on the Share button, that will show you the shortened URL for the video. Below that is where the email and embed buttons have disappeared to. There are also Facebook and Twitter buttons to allow you to easily share the video to your social networks. Once you click the embed button, you’ll get the usual embed customization options like choosing what size and what else to include as well as the embed code to copy.
Once you know where to find the button, embedding YouTube videos works just like it did before.