England coach Fabio Capello saw Young torment Wolves full-back Ronald Zubar and supply a string of telling crosses.
But Villa needed an 83rd-minute goal from John Carew - his second of the game - to rescue the game after Wolves had moved ahead through Jody Craddock and a James Milner own goal.
O'Neill said: "I thought Ashley was exceptional. He was mesmeric. If the England manager was here, that can only be good news for Ashley.
"He really was magnificent. He made the first goal for his but his overall performance was top class. He delivered so many dangerous crosses."
O'Neill was disappointed with the reaction of the crowd at half-time and then cupped his ear towards supporters housed behind the dugout at the final whistle.
He said: "The opening 20-odd minutes was as good a display as we have produced in recent times.
"It was scintillating stuff and you should have got long odds on us being booed off at half-time.
"But that's the nature of things. I suppose a Carling Cup final appearance, the semi-finals of the FA Cup and battling for a top-four place in the league is maybe what is expected to happen here every year.
"Does it upset me? I expect it. It is more the nature of the game nowadays than ever before.
"I don't think it is just an Aston Villa thing but not every single side has reached a cup final, a semi-final and with nine games to go is in the hunt for the top four."