(1) "Resell" is the not quite accurate word here as they are going to give it for free, but I can't come with a better word.
The point is email address arent just for getting emails, they're used as identities online.
How horrible and shortsighted. Yahoo is actively inviting ill will and complexity.
A simple query would show that these vanity addresses are sitting stagnant. A touch of PR and awareness instills or revives interest.
I think an optimistic view is that Yahoo! is willing to cut the fat and take chances on reuniting strayed in addition to inviting new users.
If thomasted110 is the best what's available for now at yahoo, there will be, simplifying a bit, 109 another unhappy users (thomasted1..thomasted109) + tedthomas_xx users + other unhappy Ted Thomases settled for different username at yahoo.com.
None of them is aware if tedthomas will be available. Most of them will not even know that this grand redistribution will take place. In the end if tedthomas will be "reused" only one of them will be moderately happy, while others are no better of.