It makes sense that Google would want people to have as many ways as possible to watch their YouTube videos (and of course ads) on their TVs. The company already streams videos via third-party devices like the Apple TV and HP's Media Smart TV, but the new tool could help them reach new crowds. Unfortunately, Google Media Server does not work with the Xbox 360 due to legal issues.
The tool is currently available as an early beta, so it’s hardly ready for prime time. If you are the early adopter type, however, you can download the Google Media Server here.