I've started trying to make video clips for a game I play. Problem is I'm losing a lot of quality when the video is uploaded to youtube. And checking out similar videos I don't see the quality as bad as this.

http://postimg.org/image/bdabq6px1/

These are a couple screenshots I took of it on youtube and playing it in MPC-HC. I understand there's going to be some loss in quality, but this seems a bit drastic. So far the process I'm using is this:

Capture game footage with FRAPS at 1280x720@60fps
Edit clips in avidemux (http://fixounet.free.fr/avidemux/)
Render in avidemux using mpeg4 (x264)
Upload to youtube results in this: http://www.youtube.com/watch?v=PViS71gh27U

Using MPC-HC, the "media info" shows me this:
General
Complete name : C:\Fraps\Movies\focus_fraizer.avi
Format : AVI
Format/Info : Audio Video Interleave
File size : 1.44 GiB
Duration : 2mn 10s
Overall bit rate : 94.5 Mbps

Video
ID : 0
Format : AVC
Format/Info : Advanced Video Codec
Format profile : [email protected]
Format settings, CABAC : Yes
Format settings, ReFrames : 4 frames
Codec ID : H264
Duration : 2mn 10s
Bit rate : 93.0 Mbps
Width : 1 280 pixels
Height : 720 pixels
Display aspect ratio : 16:9
Frame rate : 60.000 fps
Color space : YUV
Chroma subsampling : 4:2:0
Bit depth : 8 bits
Scan type : Progressive
Bits/(Pixel*Frame) : 1.683
Stream size : 1.42 GiB (98%)
Writing library : x264 core 123 r2189 35cf912
Encoding settings : cabac=1 / ref=3 / deblock=1:0:0 / analyse=0x3:0x133 / me=hex / subme=7 / psy=1 / psy_rd=1.00:0.00 / mixed_ref=1 / me_range=16 / chroma_me=1 / trellis=1 / 8x8dct=1 / cqm=0 / deadzone=21,11 / fast_pskip=1 / chroma_qp_offset=-2 / threads=6 / sliced_threads=0 / nr=0 / decimate=1 / interlaced=0 / bluray_compat=0 / constrained_intra=0 / bframes=3 / b_pyramid=2 / b_adapt=1 / b_bias=0 / direct=1 / weightb=1 / open_gop=0 / weightp=2 / keyint=250 / keyint_min=25 / scenecut=40 / intra_refresh=0 / rc_lookahead=40 / rc=crf / mbtree=1 / crf=8.0 / qcomp=0.60 / qpmin=10 / qpmax=51 / qpstep=4 / ip_ratio=1.40 / aq=1:1.00

Audio
ID : 1
Format : PCM
Format settings, Endianness : Little
Format settings, Sign : Signed
Codec ID : 1
Duration : 2mn 10s
Bit rate mode : Constant
Bit rate : 1 411.2 Kbps
Channel(s) : 2 channels
Sampling rate : 44.1 KHz
Bit depth : 16 bits
Stream size : 22.0 MiB (1%)
Alignment : Aligned on interleaves
Interleave, duration : 56 ms (3.33 video frames)

Do some codecs fare a bit better when being uploaded to youtube than others? I'd hate to think I have to go to 1920x1080 for decent quality for youtube. Any help would be appreciated, thank you! I apologize in advance if I'm overlooking or making any obvious mistakes as I'm quite new to video editing.