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In order to compete a company/corporation often needs to diversify and in the same vein that a marriage within (i.e. to one's cousin) is not always healthy, relying upon one's internal set of programmers might stunt growth in this global market.
Certainly Flickr has made a new wave of programming possible and has given bloggers more creative options -- I would think that "thinking outside of the box" can be good for Yahoo in terms of the uses that people will come to expect from Yahoo. Yahoo will be able to thrive from this move.
Already an article has appeared in The Search Engine Weblog praising Yahoo Mail's new AJAX interface:
http://www.searchengine-weblog.com/50226711/yah...
So what do you think? (Vinny or any other reader of this comment)
Is this the case of innovate, expand, and thrive or now that hackers have been invited to help improve Yahoo, will this be the case of too many cooks spoiling the soup?
I think positive factors have already come into play.