This one (done internally by a group at Microsoft) is vastly superior: http://video.google.com/videoplay?docid=4313772690011721857

It would be called Hotmail?

ie: It would have been done over 10 years ago and not called "innovative" by anyone.

(Of course, microsoft bought hotmail, but that's aside the point)

utter fanboy rubbish come on guys.

At least they wouldn't obstinately refuse to add in folders despite the fact that every user begs for them.

Folders are unnecessary, and the wrong approach for mail. Filters + searching provides you with far more usability than folders could.

There are times it is absolutely wrong to listen to your users or clients, especially during a disruptive change like web 1.0->web 2.0.

That's an incredibly arrogant statement. I don't know if there's ever a time to ignore a large number of users when you're far from the leader in a field. Telling them "you can't have the feature you want, but trust us, this one is better anyway" is just plain foolishness.

I personally love folders. Folders + searching is pretty much perfect.

Google Reader has folders.

One of my cofounders uses Hotmail for his personal mail. This isn't far from the truth.