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Other than the design aspect - Yahoo!'s web technology is largely, for the lack of a better word, 'adequate'. Their search bar searches well (powered by Bing), their mail client sends mail, and Flickr is still a great service for image consumption and storage.
What of their 'lifestyle' or 'media' portals? For instance Yahoo! Answers, Finance, Auto, Sports (Fantasy Sports as well as Sports news) etc? These are all great Yahoo! product areas in their own right. What do you think users would say to Yahoo! making a media play similar to what AOL has done?
One gripe of mine is Match.com, another Yahoo! property. It seems largely untapped. It isn't widely branded as part of the Yahoo! portfolio (lacking the trademark Yahoo! Purple design scheme, for one), and it seems it has largely operated independent of its parent company in the past. I think Yahoo! should either choose to do something with this website and have it mean something to the rest of the Yahoo! family of products, or sell it off and use the money to fund other ventures.