After Yahoo! Photo, Yahoo! Auction joins the club of closing down. Effectively in June 3, 2007, Yahoo! Auction will not accept new posting anymore. All the auctions will stop re-submit for the June 3, 2007 posting as well. However, the Hong Kong, Singapore, and Taiwan Yahoo! Auction sites will remain operation.
I think it's is a totally logical move for Yahoo. Yahoo! is still a very popular brand in the Asian countries. People like to use Yahoo! Mail, Yahoo! Auction, Yahoo! Question, and Yahoo Messenger. Due to the censorship, Google has a hard time to get more popular in Asia especially in mainland China.
On the other hand, people in the US in favorite of Google a lot more than Yahoo in the recent years. In my opinion, Yahoo's marketing has a big problem. Have you heard of Yahoo 360? Have you heard of Yahoo Pipes? Do you know del.icio.us belongs to Yahoo? I think most of the people never heard of 360 (Yahoo's "MySpace") although it carries some very cool patients. Average people will not use Pipes since it is more a programming tools. I'm sure there are a lot of people are using del.icio.us but usually people cannot link del.icio.us with Yahoo (and Yahoo bookmark service).
Yahoo does not know what it is doing recently. There are so many services but totally disconnected (Google has the same problems as well). Since Yahoo targets itself as a "media" company instead of a search engine/advertising business, it needs to focus on it's media business since as photo, video, and music.