Well it's not really designed to be a browser replacement.. find something you want to download, open it up find the stream URL and click download. It's handy because it works with lots of different sites which embed video.
However for YouTube the one you posted looks pretty good.
To the OP: don't bother converting to AVI, use MP4 because that's what YouTube uses. You can convert the YouTube FLV to true MP4 with ffmpeg (I just have a batch file I can drop the FLV onto and it converts it.. I can post this later if anyone wants it) or I'm sure several other tools (e.g. SUPER C) should do it.
I quite like format factory. If you install a firefox plugin to download the video you want as a flv/mp4, you can use format factory to convert to any type you want.
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