Yahoo plans to go to 1GB, so Yahoo has gone to 2GB - with (far?) more to come. So much for my already hitting 19% of my limit. I keep copies of all my mail locally, bug Gmail is now my main mail client. It's a better client than Eudora or OS X Mail.
Storage is an important part of email, but that doesn't mean you should have to worry about it. To celebrate our one-year birthday, we're giving everyone one more gigabyte. But why stop the party there? Our plan is to continue growing your storage beyond 2GBs by giving you more space as we are able...The RTF is very nice as well. I have 50 invites; I've managed to convert a few of my friends. (I think anyone who has a legitimate desire for a Gmail account probably has one by now -- just ask a geek friend. I only give them out friends and acquaintances -- I'd rather not encourage misuse.)
...Fonts, bullets and highlighting, oh my! Gmail now offers rich text formatting. And over 60 colors of the rainbow.