GMail I think Hotmail is toast. Google is now giving away e-mail. Their e-mail accounts will allow up to 1 gig of storage! My domain hosts won't give me that much e-mail space and I pay them every month. Google will also have ads appear next to the e-mail that match the content of each e-mail message. This completely alters the free e-mail landscape.
Here is the Google ad copy for service:
A Google approach to email.
Gmail is an experiment in a new kind of webmail, built on the idea that you should never have to delete mail and you should always be able to find the message you want. The key features are:
Search, don't sort.
Use Google search to find the exact message you want, no matter when it was sent or received.
Don't throw anything away.
1000 megabytes of free storage so you'll never need to delete another message.
Keep it all in context.
Each message is grouped with all its replies and displayed as a conversation.
No pop-up ads. No banners.
You see only relevant text ads and links to related web pages of interest.