They've saved themselves £32. How is that a bad thing?
Because storage is subscription based it's not just like deferring a purchase for 12 months.
I doubt this misleading promotion
How exactly is it misleading? I haven't seen the advertising for the particular promotion in question, but all the other similar promotions I've encountered (example) are quite honest.
is going to make someone pick OneDrive over Dropbox. If you have that much data you're going to store, you're probably going to want to store it for at least 10 years and not have to worry about moving it.
I'm not sure that's the necessarily case, it certainly isn't true for me. Anyway the client softwares for cloud storage all seem to handle upload fairly silently so it may take a while to re-upload but it's a fairly painless process.
(FWIW I use Skydrive because the 25 GB I got (and still have) free in perpetuity (until Microsoft decide I don't which, since I haven't paid for it, they're perfectly entitled to do) was (is still?) the largest free space of any cloud storage provider. I also use Dropbox here and there because it still has XP support and I'm still tied to a couple of XP boxes at work. If someone else offered more I'd potentially switch (I'm over the SkyDrive free limit but currently have a time-limited upgrade).)
@GoddersUK: Interestingly it looks like I do have the camera bonus enabled on my account regardless :D