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While there are exceptions, you generally need the research merit badge - a PhD. If it's something you seriously want to do, consider entering grad school.
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Yahoo has more pressing issues than research. A shift of focus away from research was to be expected after the last reorg.
Yes, but it's a sign of a company in decline. Research is what keeps you at the forefront of your industry- at this point no-one is expecting Yahoo to do that, but it's still sad.
Many quants have moved to silicon alley/valley from wallstreet due to the spectacular crash of 2007. Curiously, there have been much chatter about a crash in the tech sector lately - strange attractors.
Also this just proves further (in case anyone doubted) that Microsoft is in the game for the long haul.