I have a handful of each type of sites that I use for feeders to my paysites. I've found that my hosted tubes do better with both SE traffic, as well as user interaction. They spend more time on site, and my bounce rate is much better when I host the videos, which is possibly why I do better with seo and get more SE traffic on hosted sites
The other thing that seems to make a huge difference is the amount of time spent on the pages, writing good titles and descriptions. After 30 - 60 days of spending more time on the words on my sites, I see steady growth. As oppose to when I just suck in 1000 videos and have the spinner create titles on the fly

I think Google is smart enough to know that the sites using scrapers and text spinners aren't going to give the surfer what they are looking for any more!
I picked up a copy of Dragon Speech for my laptop, and I can crank out 20 videos an hour with good fresh titles, tags, categories and 250 word descriptions.
Good luck
