For video, I don't really see anything wrong with Vimeo aside from its lack of critical mass. YouTube still has 99% of the content you want.
If you want to share film of yourself lighting farts, you put it on youtube.
Whereas if you want to make an detailed animation about philosophy's relationship to the colour blue, then you put it on vimeo, and if it is any good then someone else will put a badly transcoded version of it on youtube, which is where most people will watch it.
I'd say no, because I'd expect the labels to keep throwing lawsuits at a serious YouTube competitor until they were. Moreover, the labels have a new piece of ammunition they didn't have against YouTube: YouTube meets our requirements, why can't you?
I use Firefox with the usual privacy plugins: NoScript, RequestPolicy, AdBlockPlus, and Ghostery. No matter how I configure the settings, including disabling all of them, I can't get Vimeo player to work.