Jerry Yang had this to say in his letter to Yahoo! employees:
we should focus our energies on continuing to execute the most important transition in our history. how will we do this? by executing against the strategies and priorities we already have in place, and by continuing to deliver indispensable experiences for our communities of users, advertisers, publishers and developers.
Actually, Jerry, the problem with Yahoo! is that you don't deliver any indispensable experiences. With Zimbra's corporate-facing email solution, you get close, but I don't need Yahoo! Search, Groups, Finance, etc. I can take or leave them (and generally leave them).
Yahoo! needs to find those indispensable experiences for its users. It hasn't found them yet. More accurate advertising would be a great start, but how about focusing where Google isn't (yet): Enterprise. Give enterprises a credible, open alternative to Microsoft.
Now that would be indispensable. Yahoo! Instant Messenger is not. Stop building toys.