The voice recognition software that creates the closed caption is still flawed, but that won't stop millions of users from enjoying the benefits of the auto-captioning service that YouTube recently made available to all users.
I tested it out on a couple of my videos and some of the results were hilarious. If there was any background music, the captions were absolutely worthless. In a perfectly clean sound environment, the results were pretty good - as long as the speaker went slowly. If there was any background noise, not even every other word was correct.
Despite its limitations, the service is very valuable, and stands to improve over time. You can download the transcription for editing, though with some of my results I'd be better off starting from scratch! Overall, the move will increase the accessibility of YouTube videos for hearing impaired viewers, and the translation service will open up videos to international audiences.