Yahoo! has a new update that serves up some personalization into search results. Let's say you're searching for pizza. You'll now get results for pizza places in your area, despite not including a location in your query:
As you can see, there are also links so that you can refine your search to an even narrower neighborhood or town within a greater metro area.
Additionally, Yahoo! will serve up the local biz shortcut when it recognizes you're searching an establishment in your town:
This is a great implementation of personalized search. And it shouldn't be too threatening to SEOs, who should be focused on local search as part of their overall search strategy.