Actually, we'd bought the domain in 2005. It seemed like the right thing to do later on.
Remember that nobody had really done domain names like that (maybe cr.yp.to? i also have had burri.to for 15 years...) in a big way before, so it wasn't clear that it was a bad idea at the time.
Some of the other domains, like http://delicio.us/ worked correctly too. I wonder if Yahoo! kept them all.