Just an update on this. I was still having this issue, but I THINK I have solved it. I came across a blog post mentioning that someone had very slow general wifi access (ie weird safari browsing slow downs) from their iphone. But it was only the iphone that had the issue, nothing else. He discovered that he had local DNS settings on all his computers, but of course, the iPhone was using the DNS settings via DHCP from his router. The DNS server he had configured there was dodgy and not responding reliably.
On the off-chance, Ive just set up my router using OpenDNS rather than my local ISP DNS servers (which I have occasionally seen to be slightly dodgy during my day job at a solution provider). So far, its looking very promising, with several YouTube videos streaming for over 1 min via Wifi. Conversely, last night, streaming the same 10 min video, it would pause every 5 secs.
I am running a time capsule Time Machine backup at present, so will see how it goes after that.