This is more of a personal wish than a biz plan, but I would like to see yahoo focusing in becoming a WebService provider, push YAP (http://developer.yahoo.com/yap/) more, merge services and release a competitor to Google Prediction API.

I have the feeling that Yahoo services are way overlooked, at least in my circle of devels.

If I had to narrow the target down, I would start by focusing strongly on Geo(location|tagging|aware) services.

I used Placemaker (http://developer.yahoo.com/geo/placemaker/) at a previous company I worked for and it was not just the best tool for the job but basically the only viable option to bootstrap our use case (MetaCarta was great too, but with an higher cost).