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I'd offer old skool pro users a year free as a good faith gesture of "We are committed to offering the best possible service and response to your needs, so here's a year free - just try us for free and see if we live up to our pledge."
I would set it up so people can log into their yahoo account directly from Flickr without having to pass through a Yahoo page if they don't want to.
I would hire extra, dedicated, staff (enough! and skilled!) to tend to any login, etc. problems anyone might have, with a place on the Flickr login page that says "Trouble logging in? Talk to our help staff" or something similar.
I would set up a board that includes some Flickr users, Flickr staff, and Yahoo execs to hash out the terms of service so that a clear statement can be drawn up per how member photos may or may not be used with regard to Yahoo branding/advertising, etc.
Further, I would make the board permanent, and have biannual meetings to address any future Flickr issues that may arise, as well as feel-good stuff - a permanent bridge between Yahoo/Flickr and its users.
I would remove the dire "your Flickr account and all your photos will be deleted if you delete your Yahoo account!" and apply a generous grace period in which the thing can be resolved in case the deletion was accidental, malicious, a problem on the server side, etc.
The initial announcement was accompanied by promises of future improvements. Wow, wouldn't this be a great time to talk a little about what some of these wonderful new things might be? I think so.
Finally, for any old skool pro who still wants to jump ship, I would extend the offer to buy them a six-month membership on X, Y or Z photosharing service, and say "We understand and honor your concerns, but we think that you may want to come back in the future; we'll back up your account if you choose, and it will be there waiting for you when and if you decide to renew your Flickr membership". This is saucy. It's also a big gesture, a sign of confidence, and much friendlier grist for hungry blogmills.
And for heaven's sake, I would hire me a small team of super smart advisors who really know how the power user/community/bloggy side of the internet works.
Yahoo didn't buy flickr...They could give a rat about purchasing a well-designed site with a back end optimized for uploading, tagging, organizing and displaying photos.
What did Yahoo do?