You are already starting to taste the future. Google wants you to use their products so bad, that they will provide free storage (Google Music). Same with Amazon. I think eventually, Cloud storage will be completely free. As soon as the cost to host the cloud files is less than the revenue generated by people that make purchases (music, movies, books, apps) from that cloud vendor, cloud storage fees will be no more. I think we are getting closer to that reality. Maybe I'm crazy.
I don't know. I understand that Google wants me to use their products instead of Facebook's, or Apple's, or Amazon's. But why? They don't do it to get my business, in the traditional sense - I don't recall ever writing a check to Google or Facebook, although I have done business with Amazon within the past week. Yet Google is among the most profitable businesses on the planet, and their stock price is pretty decent for a company that gives everything away.
To me, Google is the ultimate middleman. Businesses write them lots of checks for things like AdSense so Google can connect them with potential customers like me. I write checks to those businesses, and the cycle is complete.
The better the quality of Google's information about me, the better they can target ads to me and the more valuable they are to the people who want to sell me stuff. Google has lots of competitors who are doing the same thing, and if they can provide better information about me, some businesses will write checks to them instead of Google.
How does Google get more information about me? They funnel more and more of my daily life through their servers, and then they write cool algorithms to figure out whose ads to flash on the screen while I'm using Google services. Businesses love them, and write even bigger checks to them. Of course, Google's competitors are doing exactly the same thing.
Which brings me back to 16G of phone storage. (See how I kept this post on topic?) It's to the carriers' advantage to boost data usage by squeezing our stuff off the phone and into the cloud, but it's also in Google's interest because it gives them more of our stuff to scan, and improves their performance for their real business, targeted ads. So reduced phone storage and Google Drive are introduced in the same month. I don't think that's a coincidence.
When a profit-making company gives away something that costs them money, you have to ask: where's that money coming from? We like to think of ourselves as Google's customers, but their advertisers are really their customers. And what are those advertisers buying? In a word, us. And the more information they can squeeze out of us, the better product (us) they can provide to their customers.
So I actually think you're right, and we may very well continue to see free cloud services for a long while, as long as the market for the cloud stays competitive and Google and others can make their money elsewhere. This is a race by a number of large companies and startups to capture our data, and they're all spending large amounts of money (translate: giving us lots of expensive storage for free) to come out on top. If the cloud storage business stabilizes, though, watch for the providers to turn the cloud itself into a revenue stream. At that point, our entire lives will be out there and we'll have no choice but to pay up. Maybe not in 2014, but I think not later than 2020. Just my wild guess.