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Gmail is trying to get you to rethink the current email paradigm.
It's not such a bad idea. There have been many occasions where I've wished to be able to track down an email that's a year or two old. But I'm a "delete forever" guy, and tend to save no more than 6 months worth.
But saving my emails in a web-based archive ... hmmmm ... have to think about that.
1. HTML:
While Gmail faithfully *renders* HTML-formatted email, it still falls short in two main areas:
-HTML composition--you can only compose plain text, not HTML. I think this is what the original poster was asking. To me, this is not that big a deal, but it would be nice to have. Fortunately, as I posted above, Gmail Support says HTML editing is forthcoming.
-HTML email forwarding--Gmail fails horribly here. If I receive an HTML-formatted email and I just want to forward it to someone else, Gmail strips out all formatting (including any inline images) and forwards just the plain text. At the very least, Gmail should let us forward the email as an attachment. To me, this is the single most annoying feature of Gmail that is the real "deal breaker". It will certainly confuse and aggrevate many users. For those who say this isn't important, tell that to your mother when you send her an HTML-formatted email containing an image and SHE wants to forward it on....
2. Privacy:
While you have a point, you have to consider the company. Yes, Google is in the search and data mining business, but they have also have a very proven track record with regards to privacy. Yes, things could be abused, but personally, I trust Google far more than I trust the likes of Yahoo or Microsoft. If you don't agree, you always have the option of not signing up for a Gmail account or only storing "non-sensitive" information on a Gmail account and maintaining your separate online or offline archive.
3. Security:
How is this any different from a service including Hotmail or Yahoo Mail? Yes, Gmail offers more space, but at present, I guarantee you people maintain very sensitive information that could just as easily be compromized. One way Gmail could improve security is by simply implementing one of those "improved" login screens ala PHP-Nuke that requires the use to type in a code number graphically displayed with on login screen? Unfortunatly, it would render auto-login apps like "Gtray" inoperable, but I would accept that for sake of higher security.