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There's no chance of Google offering 1TB free to everyone in the world. Even with just a small minority using their full allotment (there are plenty of warez hoarders, photographers, and video makers out there), the cost would quickly balloon into the hundreds of millions.

100GB is on the outer edge of plausibility. 10-20GB would be reasonable. One is definitely not enough.

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Google has $44.6 billion in cash and short term investments at their disposal. Dropbox was recently valued at $4 billion. If Google could spend hundred of millions (or even a few billion) offering tons of storage space, you would have to think might consider doing so over doing something like trying to buy Dropbox. They would become the leader in the space almost overnight. At the very least, I would expect them to offer unlimited storage for movies and music purchased in the Google Play store (similar to Amazon).

With Googles new push to have all products making money it is unlikely that Google will sink too much money into offering free Drive space.

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