However, It's nothing new. It would seem plainly obvious based on my experiences with other email services that they too, do the exact same ad-targeting of emails as gmail does. The only difference is that Gmail is very obvious and open about it, to develop trust in its users.

Google is not some magical fairy out to 'rid the world of evil' with its great free services. It may try to appear that way, but a pleasant corporate image isn't a new business technique. It is a business and I think some supporters fail to see that and provide baseless support for Google. Gmail's ad targeting is not violating new territory, or going into the bounds of the unacceptable. Their methods are not unusual, it's their target that is different, and has people all stirred up.

The conventional business platform, down to its very core, relies on targeting a very specific characteristic of it's consumers : ignorance. I think Google saw this, and saw how saturated the current markets were with this and felt it's success would lie in trying something new. So instead they targeted consumer's 'Trust'. I think Google's approach is to avoid the standard practice of reaching in peoples wallets and taking money before they know whats going on, and instead, invite them into the warm comfortable house of Google, where you won't want to leave. Nobody else wants to risk trying this approach because trying to go after consumer's trust, requires you to be... well... trustworthy, What business wants to do that? Since Google did this from the beginning, they have been able to uphold this image, at a huge financial investment I can imagine.

As a business, if I were to feel Gmail sponsors my competitors, I would come to one conclusion : I need to advertise with Google instead. I don't believe this is strong arming the market, or underhanded trickery to end users, I think its a solid business platform that Google is banking on.

Sure, it may just be a gimmick of their 'good guy' image, but it works better for me as an end user as well as those who have invested in Google's adsense service. I like to think of it like the practice of coupons. The end user gets a discount, and the retailer gets your business. Both parties are happy.

In the long run, big business like Yahoo, and Microsoft, are not running scared crying for mommy at the sight of Google. Worried?, yes, Scared?, No. Ignorance will always been marketable, regardless of the alternatives. This holds true even in the ecommerce world. There will always be money to be made as long as the blind consumer desires for things they do not have.