I think they are different sites that are no longer comparable, because of points brought up by ASHOTIE
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Newgrounds had a chance back in 2007, when it was suppose to create its own embedding features. Instead it created program called "swivel" that lets users convert flash to movies so its users can put them on youtube. Youtube doesn't have games & yes. Feedback depends.
ASHOTIE
I'd have to say that NewGrounds is a place more for animators and artists. It's a place of interaction and community, whereas YouTube is just a site for watching videos with topics. This site is meant for artists to have a chance. On YouTube I have 56 subs, but get 300 views per video. Here, I have only 4 fans but got 1,056 views on my No Man's Sky Parody. This is a place where you can get criticism and thoughts instead of likes and dislikes. It would also help if you'd check out my No Man's Sky Parody. And maybe, just maybe check out my YT Channel. Thanks.
Captain-Ganto
for lack of better word, i grew up in newgrounds, and i saw it fall because of youtube. i wonder if NG could adapt and take youtubes place, some how