No, Yahoo did not really try. They did more than anyone else, but it's an existential threat. These companies won't exist if people keep feeling their data is insecure. It's already happening internationally, US-based companies are getting pummeled.
Yahoo is a public company, and did not want to have a $91 million loss in addition to their already failed everything else.
Yeah, if they' re going to end up out of business anyways, what's a little bit sooner. And, amazingly, standing up for your customers will probably lead to more customers, not fewer. But even if it really pissed of the customers they did have, so what. The Yahoo precedent was set, and everyone else fell into line. That's why they should have picked up the phone, paid the fine for disclosing the legal battle, and enlisted other parties to help.
And no one uses Yahoo, at least intentionally. How the shit do they fight back with a barely captive audience?
This is a stretch. I've heard of people who use Yahoo. Back a few years it seemed more common.
So Yahoo takes the burden, what happens to the rest of the companies? The competition? They learn not to oppose the government. Yahoo, from the article, was the first to comply. If they did not, and died as a company, would anything be different other than fewer @yahoo.com email addresses?
Yes, absolutely. We would have known contemporaneously that this was happening. Years later, what can be done? Very little. And, instead of being a joke, Yahoo would be a company with principles. It may have even worked out better for shareholders.
The worst that could happen is that the board opposes the CEO, and fires and replaces management. Which happened anyways.