Hi,
The only way to support Google or Yahoo accounts without having the user register the normal way and get a new password for your site is to use Open ID. Google and Yahoo and others support the Open ID standards, so users can sign in using those accounts if they know the Open ID uri associated with their account which they usually don't. So if you just enable Open ID in mojoPortal, users can login via Google and Yahoo using the Open ID sign in if they know how and this uses no third party services other than the Google or Yahoo open id servers. The problem is its too complicated and users don't know anything about Open ID even though their Google and Yahooo accounts support it.
The ID Selector is just a 3rd party widget that decorates the Open ID sign in to make it easier for users to figure out the correct url for their account type. It still signs in directly against the Google or Yahoo servers, the only third party thing is the widget which is just javascript. But even this widget is not friendly enough for most users.
The RPX service is the most friendly and most likely to be useable by real world users, but it does rely on the RPX service. I have implemented support for it and am now using it on this site. It will be included in the new release coming this week.
For more info see this new documentation: http://www.mojoportal.com/using-rpx-instant-open-id-single-sign-on-service.aspx
Best,
Joe