you just copy a YouTube link and paste it into SnipSnip.it. It'll load the video and let you set the starting point and the ending point. Once you submit those points, SnipSnip.it will provide you with embed code and a link so you can share your snippet however you like.
Looks good. But splicd.com has been doing this for years.
Wireless routers are very cheap and have been widely deployed in SOHO and public WiFi hotspots. Many routers can be upgraded or enhanced by different firmware distributions.