Hosted domains basically allow you to host your email accounts on sites like Gmail and MSN, requiring you to change the MX records for your domain to point to the mail servers provided by them.
Three things that prompted me to use the hosted domain services are
1. I kind of don't like the default squirrel mail that's comes a part of most hosted websites, the interface is a bit clumsy and features are little.
2. Hosting my email on a mail provider allows me to use their features which they already have in place for regular users.
3. I do not have to worry about email accounts eating up into my hosting space.
Though I have used both Gmail and MSN for hosting my domains email accounts, I am clearly in favor of using Gmail for my hosted email service.
Reason 1 and the top most priority is MSN hosting provided me with 2 MB of space and a non Windows live account ( even though they said that they would provide 2 GB and a Windows Live account, this feature is only avialable in a select few countries ), now compare that with Gmail's service which provides me 2 GB of email space, that's a whopping 1000 times more space than MSN provided me with.
Reason 2 and again one of the most important is that Gmail allows me to use pop accounts, meaning that I can directly access my hosted accounts from my desktop using Outlook or Thunderbird or for that matter any desktop pop mail reading application.
This feature is not avialable in MSN hosted domains, and user's have to pay additional amounts to avial this facility.
Third reason was that Gmail's interface is very easier than that compared to MSN, the email interface being familiar is also much better and faster than what MSN Hotmail non-live accounts have.
Fourth reason is that the domains that I have hosted are directly related to my regular Gmail account.
Anyone else has had any experiences with either one of these services, please let me know through your comments.