These days, my only use of Yahoo! properties is Flickr—and usually, that’s just to find (or share) Creative Commons-licensed images.
I’d argue the company’s current positioning line says a whole lot about why they’re in this mess: “We make the world’s daily habits inspiring and entertaining.” That’s a huge, unfocused mandate for a company that’s mostly a rag-tag collection of also-rans (and it’s a little too obviously delusional even for Silicon Valley, because one of the world’s daily habits is using anything other than a Yahoo! service).
For a long time now, Yahoo! has behaved as though its sole remaining ambition is to appear as a cautionary tale in the next edition of Simon Sinek’s Start With Why. Like you, I don’t see a way out for them.
On that note, here are two cartoons from five years ago this month, when it was becoming apparent that Yahoo! was planning to dump Delicious (and that they may have actually acquired it while sleepwalking).