That's right.

Yahoo! launched Yahoo! Nederland (Holland) (www.yahoo.nl) more or less one year ago, which is a more basic home page than other usual Yahoo! home pages. I think they should do the same for other countries to have more people from around the world to use Yahoo!, without having to create a full portal for each language/country.

Google has a tremendous success here in Israel..
(85 % of the most visited website 2006, in Israel)
When i ask my friends about Yahoo!.. they reply ; huh? Yahoo! whats that?

i definitely think Yahoo! is loosing great potential in all 134 countries..

Yes, that's true. Czechs are amazed with Google, but almost noone knows what Yahoo is. There have been lots of surprises when they find Google is not the #1 on Alexa... "What is this Yahoo?," they say... :)

Seconding the Israel claim. Yahoo seems to focus a little more on their portal, which be definition leads to more localized elements. Understandably, this results in poorer global infiltration. Google, on the other hand, generally relies on applications that rely less on local content provision and more on ideas that are global (calendar, email). Even the few local apps they do have tend to only exist in the larger Anglo countries. The one exception is Google News, which seems to pop up wherever Google has a local office.