I really don't understand why people are saying she won't get a reputation hit from this if she fails. Every other CEO trying to steer Yahoo right so far in recent history has a black eye and had to leave in relative disgrace. None of them had the superstar status that she has right now, but the fact is, none of them were allowed the conclusion "well, Yahoo was just too screwed up anyway". I'm not convinced that she'll be able to escape getting a black eye if she also fails. People are harsh on Yahoo CEOs. The deck is stacked against them in so many ways.
I think because people believe at this point it is taken that failing at Yahoo would hardly be surprising. For 2 reasons: 1) the company is in much worse shape (especially in reputation) than it was when previous CEOs failed to turned things around and 2) after a bunch of people try and fail the stigma of failing is likely to be reduced. Also here reputation is so positive that failing at a task many think is going to be hard not to fail at, won't likely turn those thinking well of her around.
Now she could fail in ways that are so bad that it does harm her reputation, certainly. I tend to agree with those that think as long as she doesn't fail for reasons that make her look really bad, her reputation won't suffer too much.
Also if Yahoo is marginally successful she may get an outsized boost - due to others failing to do even that.
Yahoo is one of those companies who has so many great properties that it will be easier than it seems to resurrect that company. They just needed a competent CEO.
Actually, your metaphor and the pattern of ruining hopefuls fits a pattern from Greek Mythology. (Other tough guys try to capture/defeat/kill a fearsome monster, but Hercules shows he's an uber-stud by finally doing it)
If you wrestle with a pig, both of you get dirty, and the pig enjoys it.
Meyer's a superstar right now. Yahoo's had an anti-Midas touch on several people who've attempted to steer it right.