Yahoo's problem is not that it is not number one, or that it is not going to get back the crown. Yahoo's problem has been that it has messed up being number two. Yahoo bought Flickr, and look at Facebook: photo sharing is the number one thing that happens on Facebook.
I was aghast when Yahoo shut down Geocities. Now talk is they are either shutting down or selling Delicious. Geocities was the original community on the web. You could argue Friendster did not survive either.
Microsoft Doldrums
Yahoo's problems are very real, but the implosion does not have to be so dramatic.
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