Concerning Skydrive, you used to get 25GB for free. Well now it is 7GB for free. But if you are a previous user you get a free upgrade back to 25GB. I don't know how long before you are locked out of the 25GB upgrade, however.
Logic without the fatal effects.
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I have looked at numerous free Cloud systems to host numerous dynamic thumbnails to help speed up a slow website.
So far I have only found Cloudy sites that require uploaded simple thumbnail to be encrypted with extremely lengthy URL, also usually logging in required to access the files. All Cloud systems prevent a simple path change to access the Cloudy thumbnail file.
I am looking forward to see what Google has to offer.