Apple, which hates Google, is supposedly working with Yahoo, who will take anybody's love at this point, to figure out how "Yahoo's services can play a prominent role on Apple's iPhone and iPad", according to the WSJ. This actually shouldn't be too much of a surprise as data from Yahoo Finance and weather already pops up on the iPhone.
Apple and Yahoo are supposedly in talks about using Yahoo's content from Yahoo Sports (which is fantastic), Yahoo News and other Yahoo websites through Siri. It'd presumably be like how sport scores and stats can pop up in Siri right now — Yahoo would feed more of its content and data to iPhone users. That's not a bad thing.
The WSJ says Yahoo has also "contemplated ways" to replace Google as the search engine for iOS but the idea "remains a long shot" because of Yahoo's partnership with Bing (Bing powers Yahoo, after all). That would be a bad thing. A non-Google search engine would make for a worse experience. More content — especially if it's the good Yahoo content — on the iPhone could be a good thing. Siri needs to get better. Can Yahoo make it better? [WSJ]