
When the web was starting up and I was still using a 14.4kBps line for dial-up I used hotmail as my default web-based email service. Back then it gave out nearly 4MB of storage (wow!), then about 5-6 years later I migrated my email account to Yahoo Mail! as it offered nearly 250MB of storage, finally about 2 years later, I switched to Gmail that offered 2GB of storage, and I haven’t maxed it out since (it’s nearly 7 years of email now).
Google went the way of Apple, instead of supplying mediocre storage Google supplied 2GB and made Gmail accounts invite only, which took a while to get viral but it eventually did. Apple did the same thing when they launched the 20GB ipod back when iriver was offering paltry 128MB.