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There's also Google Docs which you can edit in Internet browser.
And iWorks.com beta, which is free. Hope it will stay free
I think so too, and it's really easy to use. It's hard to beat if you have the need for uploading large files and can take advantage of the 7.5GB of space currently available with Gmail.
Yeah, but sometimes the size limitations are an irritant.
Dropbox works great. I like it a lot and use it all the time. I think the free option gives you 2GB, but you can buy more or get more by referring friends. It integrates with Finder too.