The Windows Phone 8 YouTube app has been woefully underutilized, acting more or less as a bookmark that redirects users to the web. No more, as the app's getting a major update today that makes it act more like a standard WP8 app -- you can pin various components right into your Live Tile set and play videos (as music) in the background, even when your phone's locked. Standards like social sharing and search are also in there, and a "new and innovative playlist design" rounds out the refresh. Perhaps the Microsoft / Google relationship is mending? We can't be sure, but this is certainly one step in the right direction. We've dropped the full list of new features beyond the break, and you can grab the app update for yourself right here.