If I wanted to get screwed, I'd sign up for .mac.
If I wanted to get screwed twice, I'd sign up for Hotmail's free email service.
Here's my reasoning.
.mac and the 100MB iDisk is a joke. How many people are on dialup? If you do use iDisk, are you going to be uploading and downloading large files to use up that 100MB? No. Even with broadband it would be insanely slow to sync large files. iDisk should be 5-10MB at most for the only thing you're going to use it for at home, syncing documents and preferences.
So you're a novice homepage builder. Are you really going to be using 100MB of storage? No. You'll use 5-10MB and be happy. Sure, when you're a webpage pro you'll likely use more but hopefully by then you'll be smart enough to get your own domain and host for a lot cheaper.
As for Hotmail. After Microsoft aquired Hotmail it slowly became a joke. Storage size was cut, a pay service was implemented, an expiration time was set and most recently, Microsoft has the audacity to delete emails without giving prior warning to users. Pretty screwed up in my opinion.
If I had a choice though, give me Hotmail at $1.70 a month, $20 anually rather than .mac at $8.30 a month, $100 anually anyday. Sure, if you're switching from your already upgraded iTools, .mac it's only $50 the first year but that isn't the case for most users.
Now until Apple can offer a toned down .mac service for around what Microsoft charges for Hotmail, how in the hell can you say it's any better? It's just not.
I don't want to here "crappy interface" BS because Hotmail has a great UI. The one time I tried using iTools it was terribly slow and I recently signed up for a .mac trial and guess what, it's still terribly slow. Sure, the UI is nice but no better than Hotmail for what I use it for and if it takes several minutes to load with broadband, Apple can keep their .mac service.
iDisk was also slow. it was nice uploading a few small files but I'd never consider uploading anything over 1MB.
I'm not going to drink the Koolaid on this one and pretend .mac is worth. For certain users, sure, it may very well be but for it's target audiance, it's a ripoff.
I'm not going to pretend Hotmail has all the answers either. It's free email service is crap but their pay service is pretty nice and integrates with Windows quite nicely.
If people had any sense they would ditch .mac and switch to Hotmail or another webmail service for a hell of a lot cheaper.