I believe it. I love the Yahoo homepage. And when I'm with a group and someone mentioned something obscure... just about everyone mutters - "oh yeah, I saw that on Yahoo." Keep in mind, these are not a geeky bunch, I'm the only redditor among them. We're talking about people who use their phones for everything and the computer to browse the web or answer an email.
Where do you live? I just went to Yahoo.com. I believe this is my first time. The frontpage articles are "Jennifer Aniston's vacation bikini", "Bizarre Russian beach scene", "Horned sea monster is a mystery", "Forgot something, Lindsay?", and "Tycoons giving wealth away." And that's the last time I go to yahoo.com
My GF uses Yahoo, they redesigned the webmail recently and she was quite confused (couldn't attach a file, we found that drag n' drop worked, but I didn't find the attachment option).