AussieWebmaster at Search Engine Watch Forums points out that Yahoo! has actually implemented the promise that they would Increase Storage to 1GB. I logged into my Yahoo mail, which has about 4,000 messages of spam and tons of unread "real" email that I will never read and saw that they have indeed increased the capacity to 1GB.
Not sure why it says 0% of 1GB, it looks like I am least using 1%. Now that Yahoo! Mail is up to 1GB, I decided to see my status of my gmail account. My gmail limit is now up to 2183 MB (or ~2.1GB). I can always pay to upgrade to 2GB on Yahoo! Mail.