Got nothing but rumors here, but I've talked to two people here at the convention who claim that Google is going to include Blogger, Picasa, and a 'safety-mode' portal into YouTube in an update of Google Apps for Ed.
Presumably, that would mean that the TOS for kids under 13 would be a moot point as all activity could happen within the school's Google account and schools would of course have services archived/secured through Postini.
Stay tuned.
[UPDATE: @BillCamp shot over this release from Google from last month; it specifically addresses bringing Picasa, Reader, and Blogger into Google Apps for Ed. No specific mention of YouTube, but that would be the game-changer as so many districts currently block YouTube out of content concerns.]
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