That is so incredibly insulting. If you go help in an aid program in Africa for a while, you could come home to find 10 years of email deleted. Who would stay with an email service that does that? Microsoft just doesn't get that users want to be happy. Are the $ savings MS gets from disk space of old deleted emails really that important?
Edit: Maybe this is a feature Facebook should implement. They ask for your Hotmail login and password anyway, they may as well say "Microsoft will delete your emails! But don't worry, we'll save them for you". Maybe then MS would take a hint and remove the "delete user's email now" code.