Great article. I don't agree with everything, but we all use technology differently. With that said, the vast majority of this is spot on.
For me, I would be happy and continue with .Mac if:
1. They actually made it a quality product. iDisk is too slow to use. Syncing is embarrassingly buggy in Tiger and really doesn't work.
2. Up the disk size. As pointed out, this is the most obvious value comparison. Learn from the brilliance of Google--most people will use a fraction of the space offered to them, so you lose little offering people a lot and make the value proposition much higher. Plus, disk space is dirt cheap.
What's Wrong With .Mac and How to Fix It