YouTube is heavy on the computer, unfortunately it's as simple as
that.
You can improve the display by not using full-screen mode, and by
using a low-resolution alternative stream as pointed out by the other
posters.
Or see if you can increase the computer's RAM, and maybe install a
clean OS.

Re. overclocking: that is not for the faint at heart.
It means changing something to the hardware, or deep inside the
operating system, to make the processor run faster than its tested
maximum speed.
In practice, that will give you 1. something like a 10% speed boost
and 2. more system crashes.

A more realistic thing would be to replace the processor by a faster
one, but as far as I know that can't be done in iMacs. (Please correct
me, anyone.)

Somehow your post sounds as if he is used to a different computer and/
or a different internet connection where everything goes smooth. Yes,
there are cheap Windows-boxes playing YouTube better than this iMac.
What to do? You could tell him that Macs are for being creative, not
for consuming tons of YouTube crap...

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