According to Microsoft, Hotmail is most sincerely dead:
When Outlook.com came out of preview in February, it already had more than 60 million active accounts. However, Hotmail was still one of the most widely used services, with over 300 million active accounts. This made the magnitude of the process incredible, maybe even unprecedented. This meant communicating with hundreds of millions of people, upgrading all their mailboxes equaling more than 150 million gigabytes of data and making sure that every person’s mail, calendar, contacts, folders, and personal preferences were preserved in the upgrade. Of course, this had to be done with a live site experience that was handling billions of transactions a day. With your help, we were able to do all of that in just about 6 weeks. We’ve spent the last few weeks ensuring that everything was completed in line with our high quality expectations.
It’s certainly seemed seamless to me, since I’m still actually using POP3 via Windows Live Mail, the replacement for Outlook Express; I’ve noticed no difference whatsoever. (Then again, I have five different accounts running through WLM, and four of them look exactly the same; the one exception is AOL Mail, which never was intended to work on POP3 in the first place.)
Still: 150 petabytes of mail? I’m feeling better about my mere 900 meg.