Google's John Mueller in a
Google Groups thread said:
"I wouldn't necessarily assume that we're devaluing Yahoo's links, I just think it's not one of the things we really need to recommend," said Mueller. "If people think that a directory is going to bring them lots of visitors (I had a visitor from the DMOZ once), then it's obviously fine to get listed there. It's not something that people have to do though :-)."
Well, the Yahoo! Directory charges $600/year for Adult links...So, on the bright side, that's an extra $600 you can spend elsewhere!