Yep. We all know how to do that already, right?
Turns out, in my research, I found a bunch of parameters I'd never heard of. You can customize a lot of the user experience when you embed a youtube vid on your own site.
So that's nice. What's really exciting, though, is that I found a site that will write you the code to do what you want!
VTubeTools - Custom youtube embed players with parameters like playlist, autoplay, loop, bb code
This is exciting. Disable the user controls...get that big ugly title out of the way...get rid of those NASTY "Related" videos (yeah right). Some of these are included in youtube's "Share" function...most are not. But here, you can just click and have it done for you!
You put your standard youtube url into the box at the bottom of the left column. Then, in the cell above it, you click Yes on the Custom Player Skin/Background. A whole new section pops open in the right column.
Paste in a background image into the url spot.
I couldn't get it to embed on WF, but I easily embedded it onto one of my sites. Click here to see the results. Note the nice border with custom image matching my page background (could be anything you want), no ugly title in the way, simple controls and nothing to distract the viewer...I like it!
I did size it down to fit. I also took out vtube's link on the bottom. You can replace it with any link you want, or get rid of it altogether.