If Marissa asked for your advice what would you tell her? Better yet, if you were in-charge of Yahoo which direction would you take the company?
IMHO, trying to retroactively morph into a "product" company is the wrong way to go. Yahoo Mail and Flickr seem like odd properties to focus on, given the competition.
I like Jonah's advice, and the idea of doubling-down on Yahoo's news and media strengths.