They fucked it up. Just like everyone else in that era. They were too much lifestyle anarchists... although even that's too generous for them. They had some good ideas but were too self centered, too concerned with minimizing oppressive authority in their own lives, instead of abolishing it all together.
Well, the Yippies were nothing more than government-funded agent provocateurs. That includes Abbie Hoffman, Jerry Rubin, and all the others. It's the same today with this "Recreate '68" organization at the DNC, which are believed to be government provocateurs.
I like you spirit, 'Rat. However I think you need to expand your critique, however. Our problems, including the shortcomings of the Yippies, go much too deep to be the fault of a secret elite cabal. You may be right in this case, but you need to ask, for example, what is it about our current social paradigm that makes such provocateurs necessary?