I came back here as I was noticing the same lag problem with videos looking choppy in Firefox and couldn't remember the addon I recommended.
Weirdly it didn't always fix it for me so I did some more digging and found a cleaner solution.
I'll note it here for my own reference:
In the Firefox address bar if you type about:config it takes you to a config page.
Accept the warning and promise you'll be careful with the Dragons.
Then in the search box put
dom.ipc.plugins.flash.disable-protected-modeDouble click the 1 match it finds to switch it to
true.
Restart Firefox
You should be able to remove the addon I suggested and YouTube videos will play as they should do.