Maybe it was true for a minute or two, but as of a few minutes after the rumor, it seems like anyone who tested the Yahoo Directory submission process, learned that they were indeed taking new sites.
I personally just submitted a site to the Yahoo Directory as a test and it went through the free submission process with no problem. I do find it interesting how people reTweet stuff without first making sure what is being Tweeted is legit.
Here is a picture of the submission add page:
After this page, you are taken to a form to fill out your site's detail.
Forum discussion at Sphinn.