thanks for the suggestion!! yes personalization is very important. before that I wanted to create front page that shows few videos picked from various services on same page (based on some kind of ranking).
I'm working on a similar project (which I can't link to right now because pagodabox appears to have melted or something) but one of the things I look for is copyright and author meta tags and if I find them I always display them. Youtube and vimeo, etc. might not have that but if you're working through the APIs of these sites or scraping their pages, you might consider getting the author (or username) and description and adding a link to the original site in the view page, just to make it clear that this isn't your content.
But to answer your question - sure, why not? If you have time, and it's not bankrupting you, maybe it can turn into something. And if not, you can always open source it.
thanks for detail response :). Yea I am planning to add link to original video. I asked question to check if people find it useful or not. I guess I don't have anything to lose as far as I am learning by spending $10/month for Azure. and yes I can always open source it later.