This is a really neat service. It basically brings the world of web mashups (combinations of data from multiple sites) to non programmers.
Here's an example of something you can do with Yahoo! Pipes: you can take the list of "Best Girls Names" and merge it with the list of "Best Boys Names" to get an overall top names list. This is a really simple example, but in reality, the possibilities are endless.
The output is another RSS feed that you can plug into a widget if you want, and embed on your profile page or blog. This is pretty cool stuff for the web geek like myself.