They still have some really strong properties (though I imagine flickr to be feeling the heat of Facebook), a 2 minutes to twelve turn-around can't be completely ruled out but it's not going to happen under current management.
Don't get me wrong -- they've build some impressive technology in house and have/had some bright engineers, but beginning from Filo, Y! was always a media company. The top management continues to drive it in that direction.
As far as properties, Y! Personals was spun off, I believe, and sold to match.com, and that was a pretty profitable business. Y! Real Estate now sells its leads to another company (Trulia?) although when I worked there, they wanted to do something in house.
As content becomes a commodity day by day (via proliferation of blogs, digg-like sites, social media), Yahoo will continue to struggle in a bid to find its relevance.