YAHOO KICKS ASS BECAUSE THEY ARE PUZZLING THE IDENTITY ! They've just acquired Mybloglog (read TC or Battelle) so they now have a foot in 4 pieces of the identity puzzle (so it's 50% and the hobby one is already integrated). They are working on identity with an acquisition strategy at a really low cost (we are talking of less than 100M for Delicious, Flickr, Mybloglog ... they have Avatar / Yahoo Answers / Vidéo ... and a lot more like Social Shopping !).[Update: Yahoo is quietly flying seeding]
Google is working on the professional web when Yahoo is working on the content and social. At the end of the day it could represent less money than Pro but if Panama works as good as Adsens ... they're gonna have a killing fully integrated service. If I had cash I will buy a Tetrapack of shares. And has I said it we are still nesting the identity (that's why I called it 0.2 // yahoo works on the web of 2009 !)
A clear proof of this differenciation strategy is available trough search results. Compare Yahoo vs Google and you will see. They bring to u-lik all the Long tail content leads when Google is bringing the people looking for us trough the u-lik request (i.e content vs Pro)
I love these guys they are clearly working on what will matters for the EPIC user, the tomorrow user.
Disclosure: I am a huge fan of Mybloglog, I was one of the early adopters (Member Since: 18th Jun 2006), it even made me show up on mashable.