I'm actually fine with paying for Hotmail access and 250mb is more than enough for me.

Has there been any thought been given to providing the software required to make Outlook and MSN/Hotmail's Contacts and Calendar sync up with each other to the users that purchase the larger inbox? 

I know Google(GMail) received a lot of attention for providing users with a gigabyte of storage for free by why not compete on features that people would actually use instead of unneeded capacity?

I'd gladly pay $25/year for a service that mimic'ed Exchange for my own personal use.