Let’s see if I have this right. There was a market for e-mail clients. (In fact, there once was a thriving software industry.) Then Microsoft started giving theirs away with their operating system. The other competitors are gone and Eudora is free, so now Microsoft is moving to PAID e-mail, with HotMail, MSN and the paid full version of Outlook.
A profitable business model, if you can get away with it.