I agree with your sentiment, but not your conclusion. That is, Yahoo doesn't inspire disgust or outrage for me. I don't hate Yahoo the way I hate some companies. The feeling that Yahoo inspires in me is something more like, "meh." It's the site that was part of the early web, and then became one of those lame portals, along with such stellar inspirations of "meh" as AOL and MSN, that you might find some piece of semi-malware switched your homepage to.
However, I don't think that means the brand is worth salvaging, specifically because the brand inspires a sense of "meh". If I hear Google or Apple is about to introduce a brand new product, my expectation is that it's probably going to be something interesting. Even if Twitter announced that they'd be introducing a big change, I'd be curious and want to find out what it is. If Yahoo announces big changes coming, I expect that they're going to be shuffling around their existing semi-competent me-too products-- like maybe they're going to have a new theme for their portal, or their webmail will introduce "labels", or something similarly uninspired.
Maybe I'm wrong. I know people have a good association with Yahoo Finance. Do people still use Yahoo webmail or Yahoo Messenger? Is Yahoo Answers used for purposes other than trolling? Are there other services that are popular that I've just lost track of?
Also, and admittedly I'm just basing this on my own perceptions, but I don't think "Yahoo!" is a very good name for what they're trying to be. Sure, it's kind of fun, but it would be more appropriate branding for a Flash game website or something of that kind. If you'd never heard of the company and it were just being introduced today, I don't think "Yahoo!" would be considered a good choice for a web portal, news site, or a tech conglomerate. It's too playful and not serious enough. Verizon already owns AOL, and I think the name and branding for "AOL" is going to play better in this day and age, and I'm not sure it makes sense to maintain both brands.
On the other hand, it's not clear to me what Verizon wants from these purchases. It might be less about what companies like AOL and Yahoo can provide, and more about trying funnel the people using them as an ISP to content they own and control.