Here's a new web site created by YouTube. Totlol
This site is devoted only for kids - kid videos only. My youngest son likes to sit on my lap while we play song after song. Even my older son will stop and watch the videos (when he thinks no one is noticing).
Totlol is still new and it looks like YouTube is still working through usability problems. However, this site is great for parents who don't want to spend a lot of time searching through YouTube's enormous and sometimes not so kid-friendly collection.
Here's one of the more popular songs on this site. My kids love this song. I love this song! The rock group Barenaked Ladies recently came out with a children's CD - Snack Time. Yes, it's a weird name for a group who creates children CDs. However, the CD is great and so is this song, 7-8-9.