Ok I'm starting to get the idea here. Sort of like a super version of .mac? But there are still major probs w/ this model. The main one I see is security. This kind of thing would be a prime target for hackers.
The second is privacy concerns. Major companies are already trying to spy on our activities constantly, having a large chunk of our data on their servers is putting a lot of faith in them to remain honest (be it Google, MS, Yahoo, or even Apple). I mean w/ .mac I could really care less if Apple looks at my drunken pics from my girfriends' birthday, but if I had important marketing data (which I don't, I just a student) involving the tech arena or even in the TV/Movie industry, I'd still be hesitant to trust them w/ that. I know their Apple, and I love them, but they're still a multinational corp.
The third is internet acess speeds. Currnet Broadband speeds are too slow for this to be a useful productivity tool right now. I could see it working in the distant future when internet speeds are considerably faster than this. But for the forseeable future, I'm gonna have to be skeptical. I mean I can send/check email w/ .mac, but I'd much rather use Mail. It's infinitly quicker to get in, get it done, and then get back to Macrumors.
Lastly is how do they make money w/ this? Either we're going to get it for free but will be forced to stare at adds all day (when all of the add-free apps have their icons right there on my dock just waiting for me to click them), or there's going to be some sort of subscription. Who's going to want to rent their software? Would any of you use iLife if you had to pay $10/month?
Maybe I'm still not getting the whole picture here. Am I still missing something?