Here's an estimation:
The site you're likely viewing has what is called a liquid-layout, which means that the content will spread to fill it's container. So when you're rotating the phone, the viewport width is changing from the narrower portrait width to the much longer landscape width. So the text itself might not be changing size, the webpage is just adapting to fit it's new window size.
Luckily the above link also has a liquid-layout, so you can see this in action. Take the window on your computer and shrink it's width. You'll notice that the text will shift around to fit it's new container size. So it's the web page (more specifically the CSS) which determins how the text wraps.
tl:dr
CSS did it.
I would imagine this has something to do with Core Data, memory warnings, or both. If Apple is using its own kit, then it is saving the cache in a Core Data store, which is, essentially, an unordered set. My theory is that when you go to a site, Safari is going to the Core Data store and grabbing the first instance of the URL in question if it exists, which can be old, new, whatever. But since I also don't think that Apple would be nearly that sloppy, I'd say that every page attempts to cache, but the amount of data required to properly cache a site is beholden to memory warnings, which you, as the user, should never, ever see, only this time the newer page simply doesn't get cached and that's why you get random older pages in view.
Okay, that was a bit technical. In short, I think Safari attempts to maintain a clean cache, but memory limitations of the device don't always allow that to happen.
Best Answer
You tube sends HTML5/H.264 video to Safari and devices that are unable to reproduce flash video, however, certain videos (those who have ADs and some other features, as far as I can remember)) are still not supported by YouTube in HTML5 format; that explains why you might experience some problems when using Safari and seeing an embedded video.
In those cases, it’s best to use YouTube’s native application for the iPhone to watch the video.
I have the HTML5 “lab” enabled in youtube and it clearly says that “videos that have Advertising will be reproduced using the Flash player instead”. The video you are showing in your example (this) has advertising in it, hence why mobile safari on the iOS can’t reproduce it.
In you want to know more about this HTML5 “trial”, you can find all the information on youtube’s HTML page.