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But I don't know how you can call Google Reader "clunky" or possibly compare it to the spartan one built into Yahoo mail. The search feature is underwhelming, but it's still better than anything Yahoo offers.
Many of the points for Yahoo are pretty meaningless - Drag and drop is also little more than a lame attempt to emulate desktop applications when it's unwarranted - keyboard navigation is vastly superior and something Google does far better - I have no need to touch the mouse when I'm in Gmail. As for support of the iPhone... it's one mobile device locked into one carrier, big whoop. I guess if I don't mind utilizing my email only in the way that Yahoo, Apple, and AT&T; can agree that I should, that's a good feature. Otherwise I'll pass.
And as a final note - Google offers free forwarding and POP downloading. Yahoo makes you pay for that feature. So Google wins, hands down, by not holding my data hostage.
I also have a big caveat with your case... if you look at the numbers, Yahoo Mail has 200 million users compared to Google's 50 million, the last I saw. Yahoo's been playing catch up in terms of features ever since Gmail lost, but it's Google who's always been playing catch up in terms of adoption.