Droid - Unblock Youtube will unblock region-locked videos, but it takes a lot of trial and error to set up. It requires a root and a completely different app to even get started with this app, and even then it's touch and go. It does eventually work, but not better than a traditional proxy app would.
This app claims to unblock videos that have been region locked in your area. To do this, you need to install another proxy app, and it has to be the particular app that Droid - Unblock Youtube recommends. Strangely enough, the second app requires a root to work properly, which means this app basically requires a root, as well. Even after you've gone through that pain of a setup, the app sometimes fizzles out and crashes when you're surfing YouTube. The app does a decent job of mimicking YouTube's own layout for easy searching, but it doesn't give you any details about the region locking of a particular video as you're scrolling. Changing your proxy's region requires starting over from the beginning of the app.
The downfall of this app is that it makes you install a proxy to use it, since most proxies would do a fine enough job of unlocking region-locked content on YouTube on their own. Still, if you don't mind a long setup process, Droid - Unblock Youtube does a fine of job of living up to its promise. It's best used by rooted users, though.