Martin Burrett reminded me of a neat tool for remixing clips of YouTube videos. That tool is called Dragontape.
If you made mix tapes in the 80's, the concept of Dragontape will be familiar to you. Dragontaape makes it easy to string together a series of YouTube videos and or sections of YouTube videos. Create your mix tape of videos just launch the Dragontape editor, enter a search term for videos, then drag videos on to the Dragontape timeline. You enter searches and drag videos as many times as you like. To trim video timings and string videos together just match them up on the timeline editor. Dragontape allows you to collaborate with others on a mix.
Applications for Education
Dragontape could be a good tool for creating video of news story highlights. As a social studies teacher I would use Dragontape to have students assemble a "week in review" of news stories.