In truth, as guessed by a few of the more circumspect bloggers, it was both and neither. A double-April-fools joke. Metapranking, if you will. Google-style fun with a big pot of gold at the end.
I was right that this was a double-April-Fool's joke and that the service existed. I thought RSS would play a large role, but I don't see that just yet. I also thought that the 1GB allotment was not going to be free, but it sounds like it might be. Now that's astounding.
Still, I didn't do too badly.