An internal memo reportedly from Yahoo!'s Senior VP, Brad Garlinghouse was posted at the WSJ and at Kedrosky that he thinks Yahoo! needs to cut back by 15 to 20%. In short, Yahoo! has invested in everything and anything and has too much of the same thing making it confusing, redundant and overly costly. They lack a focus, "clarity of ownership and accountability", "decisiveness," and "vision." The peanut butter thing has to do with, "Yahoo is spreading its resources too thinly, like peanut butter on a slice of bread."
Forum discussion at Search Engine Watch Forums.