Tipped of to it by fullofwhispers I downloaded the new Yahoo Messenger earlier today.
I am impressed, and its not often I say that about software.
They've taken everything that was in the previous version, kept it, or made it better, and added a TON of actually USEFUL stuff. The launchcast radio stations are a perfect model of how to do commercial streamed radio (free for the most part, pay to get rid of the ads and get the cd quality streaming). Not to mention the whole "create your own station" thing.. which is a beautiful feature to have out of the box.
They've added icons, like in MSN, but also Avatars that you can customise, look good, and respond to the things you type. It look better overall too.
Mostly its window dressing and subtle stuff, but then again.. thats all the iPod really is. In fact YIM is really the iPod of IM's now. It does everything you could want really well, gives you more things than you'll probably use, its pretty, lets you listen to music, and its small (about 5mb).
Oh did I mention you can listen to other peoples stations? Even without the program? Oh yes.. tune into mine ;)