Today in Tech: This week’s buzziest startup, Twitter creator returning?

A curated selection of the day’s newsworthy tech stories from all around the Web. Read on, and join the conversation with a comment below.

The new social smartphone app, Color.

This week, the startup everyone’s buzzing about is Color, a free mobile app aimed at creating a social experience that maximizes the smart phone’s unique technology. Users share and store photos and videos in visual diaries — besides being able to view their own media, they can also view media shared by other users nearby and logged around the same time. Color’s also worth noting because of its team — Bill Nguyen of Lala, Peter Pham of BillShrink, and DJ Patil, formerly chief scientist of LinkedIn — and $41 million pre-launch funding from Sequoia Capital, Bain Capital, and Silicon Valley Bank. (Fortune)
Apple senior vice president of Mac software engineering Bertrand Serland, one of the architects of the Mac OSX operating system, is leaving. “I’ve worked with Steve [Jobs] for 22 years and have had an incredible time developing products at both NeXT and Apple, but at this point, I want to focus less on products and more on science.” Craig Federighi will take over. (Fortune)
Meanwhile, Twitter creator and Square co-founder Jack Dorsey could reportedly return to the social network. Though the title of CEO has been thrown around, it’s much more likely he’d serve as something like Chief Product Officer. (Business Insider)
Yahoo announced Search Direct, a search engine feature resembling Google Instant where suggested results populate a drop down window as you type in search topics. Yahoo SVP of Search Products Shashi Seth notes the differences between the two, however. “They’re very different products,” he said. “We’re focused on providing answers, not links. Google Instant is focused on providing more links, faster. Not answers. We believe the next generation of search regardless of whether it’s on the web or mobile, they’re looking for answers, not links.” (TechCrunch)
Google has quietly launched its own full-length online magazine, the U.K.-based Think Quarterly, a — yep, you guessed it — quarterly publication with the goal of “breathing space in a busy world.” The first issue proves to be a 68-page dive into the world of data and its impact on business. (Mashable)
According to TechCrunch and ComScore, MySpace’s traffic decline is accelerating. Between January and February 2011, worldwide unique visitors to MySpace dropped by 14.4% from 73 million visitors to 63 million visitors, half the audience they had a year ago. (TechCrunch)
Windows Phone 7 owners, rejoice! Thanks to an update rolling out to users this week, you may now copy and paste like the rest of us smartphone users. (Digital Trends)
Looking to wiggle out of that T-Mobile contract before the carrier gets snatched up by AT&T? You’re definitely not alone. (Fortune)