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They are YouTube partners. Once you have a decent amount of views on your videos for everyone (It's over 1,000) then you can either apply or or be invited to become a YouTube partner where for each view on your video you get paid, YOU don't have to pay anything. For partners there is no video limit.
Also 1. The limit is now 15 minutes 2. If you are good standing and have no copyright claims on your channel you can upload videos up to 30 minutes.
No they do limit it but for special cases, you can use vimeo.com and they do not limit this, also you can upload HD.
Yes large files eat up more disk space and cost them more bandwidth, and they are charged for both.
For some publishers, the limit is higher than others...eg, 'premium partners' and so forth.
I have never seen this, maximum is usually ten minutes, where is the hour long video?
Some 'premium partners' can upload longer videos because they pay for it i think..
go to youtube and click on browse and click on the movie section
She is correct, but really how much more do you need?
I would use vimeo.com.
1 hour