Hmmm, yes very true, .mac does need a serious upgrade, and giving a free account to every mac user would be a great thing, perhaps a with streamlined services as well as a payed version with lots of nice extras.
But seriously I think the idea of a backup account equal to the size of you hard drive is absolutely nuts at the moment. Can you imagine 100000 users with 250gig to 1 terrabyte drives simultaniously backing up their system? The bandwidth and storage would be astronomical! Somehow I don't think this will be a free service for quite some time...
The resolution independence is a great thing, especially if you want to run os x on different devices, for instance a next generation ipod or a pda or the like, as well as larger monitors. Using a universal display API for rendering would make development a lot easier for apple.
.Mac Needs to Be Radically Retooled
9 Mac OS X Leopard Rumors