Looks like Microsoft may have just caught up and leapfrogged Dropbox: Microsoft takes on Dropbox with major SkyDrive update
I am awaiting the apparently soon-to-be-announced Google docs upgrade so that I can compare the two (SkyDrive vs. Gdocs).
At the moment, most of my docs are in Gdocs, with a few much larger files on SkyDrive. I used the latter as Gdocs was too restrictive on file sizes at the time.
At the moment the FREE 25Gb availability on SkyDrive looks hard to beat.
I might stop syncing my documents to Gdocs and put them on SkyDrive instead. Trouble is, I have found Gdocs pretty useful.
Still, it's nice to have choices.