Isn't this a bad idea? Isn't this an awful idea? Small agile companies can focus on one corner of the larger garden and nibble on it, siphoning off customers and making a superior product by focusing on having one product that does one thing well.
My insane plan for Yahoo? Spin off tens of seperate units that each develop their one specific product. Have the main Yahoo page be a mashup of these different services, but if a competing product comes along and its better, use it instead. Keep the ad program and share revenue with new partners to keep them around.
Having one company try to do everything will eventually fall apart. Yahoo and MS are further in the cycle, but Google and Facebook are both making the same mistakes, and I think the result will be the same.