With the right products, I'm of the opinion that you can name your company just about anything and be successful. I mean is Google's name any better if you don't keep their products in mind?
Let's also not forget about GoDaddy, which for a time was successful with that name and hobbles along (operating at a loss) even today.
I don't think there is a major problem with Yahoo products. I tried Yahoo mail yesterday and the signup process was nice. It looks like a viable alternative to gmail.
Google is a nicer name, it comes from googol which gives it some math meaning beyond the sound. Yahoo is only an onomatopoeia that sounds dumb to me (I am not a native English speaker though). Also, if you look in the dictionnary (http://dictionary.cambridge.org/dictionary/english/yahoo):
yahoo:
a rude, loud, unpleasant person, especially one who has little education