I had previously self hosted (a pain), and then used google apps with my own domain. That was when google apps had no google groups or other integration at all, and it was cumbersome to have two google accounts (no multiple login then either). So I switched to plain gmail. Certainly less work and the bonus of being able to tell people 'blah blah at gmail dot com' and not having to spell it out every time someone asked for it cannot be understated.
My needs have changed a bit though, and being able to retain my email/domain should I choose to change providers again has become more important. In addition, I no longer use the gmail web interface, opting instead to use sparrow over imap. An unlikely shift back to client centric computing even while more and more of my other services are shifting away!