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it seems like a great alternative but what kills it for me is a lack of IMAP support.

Yeah that is surprising. I would have just assumed they offered that if you hadn't mentioned it.

they offer MS exhange support instead. which is really nice. esp. also due to push support.

I'm currently testing this, took me a second to figure out the setting for android/exchange

user: \user@domain.com password: password server: m.hotmail.com

i think it's just exchange 'activesync' so it'll work on your iphone but not on your desktop mail (mac mail for me)