Agreed, for the most part. Yahoo had the right idea acquiring quality services like del.icio.us, flickr, and upcoming, but clearly lacked any vision as for what to do with them.
Something suggests that Yahoo not only lacks vision of what to do about delicious, it lacks vision and style of web services in general. For some reason none of the home-grown Yahoo services (ie not those acquired in recent years) have ever attracted me as a user. For anything Yahoo tried to do, however good-looking, there have always been more decent alternatives out there on the Net (probably Google more often than anything else).
Come on, Jeremy... I think all (or nearly all) of the Yahoo Pipes developers quit. From what I hear, management refused to support their project beyond the demo/PR stage. Some of them work for Google now.