I suspect on a given day there are many HN readers with apps with a million or more downloads who aren't getting sniffed at... Looking at what this app does it is not clear to me that this particular user base is especially valuable...
If one ran a news portal, one's perception of the value of Summly's users might be different.
Likewise, one's perception of the value of those user's selection among news items might be valued differently than another user group's selection among flatulence noises...particularly if one's revenue was anchored in advertising as is the case with Yahoo.
To put it another way, assuming that Yahoo is run by incompetents is more likely to be an error than its converse.
