Thank goodness... I've been waiting for this to happen since GMail and Yahoo increased the acceptable standards for free email account stoage. I have a Hotmail account, and pay $35 Canadian a year for extra storage, and now I can cancel that service...

PCWorld.com - Hotmail Storage Jumps to 250MB

The domino effect Google started in April by announcing plans for a free e-mail service with 1GB of inbox storage continues, with Microsoft promising on Wednesday to boost Hotmail inbox capacity to 250MB from the current 2MB.