Update, this is fixed in the latest version (for youtube atleast).
Best solution I've come up with for this is to create a user macro. I eventually gave up on Widget Connector and logged this bug... https://studio.plugins.atlassian.com/browse/WC-27
This is the user macro I came up with for youtube incase anyone else needs a decent solution for this...
## Macro title: YouTube Embed
## Macro has a body: N
## Output: HTML
##
## Developed by: Sam Hall
## Date created: 24/04/2012
## Installed by: Sam Hall
## @param vid:title=Video ID|type=string|required=true|desc=ID for the video
## @param width:title=Width|type=int|required=false|desc=Width (default 425)
## @param height:title=Height|type=int|required=false|desc=Height (default 350)
## Check for valid width, otherwise use 425
#if (!$paramwidth)
#set ($paramwidth=425)
#end
## Check for valid height, otherwise use 350
#if (!$paramheight)
#set ($paramheight=350)
#end
<iframe class="youtube-player" type="text/html" width="$paramwidth" height="$paramheight" src="//www.youtube.com/embed/$generalUtil.escapeForHtmlAttribute($paramvid)" frameborder="0">
</iframe>
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