I think this shows a massive change in direction with Google in the last years, when GMail was introduced it came with that "Holy shit that is a lot of space" while every other webmail was offering 10-500MB accounts, they came with BOOM! 5GB and growing.
Now they are simply matching the competition with the same features with the "..but it's from Google" attached to it, which is similar to what Microsoft did with Hotmail after Gmail exploded.
Ninja edit*: talking about the entry plan (free)
One might argue that you do that when you need new users (they don't), but it becomes more reactive than innovative in the end.