Questions about 2nd gen AppleTV

I have a 1st gen AppleTV and see no reason to upgrade.  However, after using youtube on the 1st gen, I'd like to know how well youtube and vimeo work on the 2nd gen.  On the 1st gen, if you watch several youtube videos, you have to back out (click menu button) of all those videos plus a few more clicks to get out of youtube before you are back at the main menu.  Does the 2nd gen work this way?
It is probably more youtube, but sometimes, buffering takes a while before a video will play.
I'm not sure how the 1st gen selects youtube video resolution (360, 480, 720, 1080).  Does any one know?   Does any one know how the 2nd gen selects youtube resolution?
How does the 2nd gen select between HD and regular resolution on Vimeo?
I do have a TV that can play 1080p but all of my iTunes videos max at 720p.  Is the 2nd gen still max resolution of 720p like the 1st gen?
thanks.

You Tube is pretty much the same on both, including resolution, buffering is likely caused by your network or internet connection. I have no information about Vimeo, the Apple TV 2 can still only play 720p.

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