Looks like Yahoo does not want to be left behind giving its subscribers a whopping 1GB storage space for email, check this like link for more info. i am checking my mail locally with pop3 and smtp using this wonderful tool called YPops! to enable us to use smtp and pop3 with yahoo. so i really did not notice the change until i went their website and to my surprise its now 1GB. i really didnt know when was the increase in mail capacity took place.
I used Yahoo e-mail a long time ago for a short period of time. My Gmail storage space is at 2.1Gb: