Yes the Hotmail team has been quiet for a while since their v1 launch, however they’ve just launched a small but feature-packed update. As well as offering free accounts the new storage size of 5GB, paying customers (Hotmail Plus or MSN Premium) now get 10GB. Some other features include auto-away messages, useful for when you go on holiday, ..
Link to Hotmail receives a big update, all users get 5GB [free] storage