Google has increased there Gmail to 2gb, up from 1gb.
I have a gmail account, but I've never really used it. I few of my friends use it religiously. It really does have some cool features. Labels are very useful. You can apply a label (or more) to each email. Think of them like categories. You can have an email part of any category. It can be really useful for sorting email.
You also get POP3 access and a great web interface. If that had IMAP and IMAPS support I would seriously consider using it.
More interestingly than that, even, is the way in which they're increasing it! It's progressively moving upwards and upwards and keeping going til it reaches 2GB, which means users are seeing all sorts of interesting numbers whilst the change takes place.
A Google rep was said that it may continue to grow in this way in the future (although presumably not at the same rate), creating a new paradigm for the way users approach email storage and hosted services in general. Exciting stuff!