The fact that Yahoo! thinks they can challenge Digg with their own version is just plain stupid. Digg’s user-base is too big for a healthy company to challenge, forget about a company on the verge of being bought.

Their step forward is opening up their search. I’ve always loved how Yahoo! offers ways of taking the search results data outside Yahoo! and use them any way you see fit. This is just the perfect way to complement it. A developers haven. Now all we need is a mix of Digg and Yahoo!’s open search, and we have a winner … till we get Google’s reply of course.