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The Italian population these days are limited to the eastern section of the Neighborhood as you head towards Queens (The annual).
And it is not specifically just about this yuppie group. Williamsburg has a greater variety of cultures living in a single neighborhood than anywhere else in Brooklyn. Brooklyn may be diverse as a whole, but its individual neighborhoods are not. At least that I can think of. It is not like the yuppies are the majority of Williamsburg yet, unless I am really that far behind in following how much the neighborhood has changed. But I still see many Hispanics, blacks and Jews around, not so much Italians but some are still around.
Flatbush is more culturally diverse by a long shot.
I guess it depends what you consider Flatbush, but if you include everything up to Coney Island Ave., it's incredibly diverse. Jamaican, Haitian, Orthodox Jewish, Russian, Bangladeshi, Arab, Mexican, yuppies...all kinds of people.
Williamsburg area would be the last place in terms of of cultural diversity in Brooklyn.
If you look at the neighborhood as a whole it's pretty diverse even for Brooklyn, as G-Dale says. It's just that the different groups have their little areas that don't overlap much.
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