Not if it remains confined to one game, one you'd only loosely define as a game and which is really only available/accessible for one region.
That said, I could see it gaining some traction among devs, if for no other reason than because it outsources the infrastructure needed for storage for free, basically. The only thing though is that it doesn't seem like it necessarily provides devs with a way of cohesively tying the output together in a community fashion around the game. If devs were to add this to say SSHD and I wanted to go find the output from this feature, I'd basically just be searching Youtube at large for SSHD vids.
I guess devs could tie the use of this API to links on their own site, compiling a catalog of all vids sent to Youtube via this feature programmatically.
What would be cool is if devs started to use this feature to automatically record video at key moments, like to record exactly how you managed to achieve an achievement/trophy in their game.