who should yield to who?

Yup..... Your diagram exactly depicts the traffic situation I thought you were trying to describe in your original post.... You had the right-of-way.

 

We have several exit/entrance ramps like that in Columbus on 270. You had the right of way according to all the yield signs that I have seen at such merge areas.

The city engineers need a kick in the nuts for designing crap like that to begin with.

But you did the smart and safe thing by hitting the next exit and coming back around.

 

I know around here that when traffic is approaching a exit ramp from the high way. They have a sign that says yield to ramp.. So in this case if I'm exiting the high way the traffic going in the same direction, but on our service roads has to yield to me.