Google IS making money from users of gmail, google reader and the other "free" services... microsoft IS making money from hotmail users.

Just because you don't pay them directly doesn't mean that they are not making money because you use the service.

The whole Web 2.0 business model seems to be to find a way to make money without charging users... and that is how and why the "free" services are likely to be around for a very long time.