I should note that, though I haven't asked Tom about it yet (which is part of why it's not live yet...), I have been reworking the new account signup process, and as part of that, I have removed the restriction on Hotmail addresses.
Tom, I think it would be worthwhile to remove this restriction at least on a trial basis. You know I'm right there with you on what Hotmail
was like, but I've seen some circumstantial evidence that it's improved in the decade since then, and if it's not being an active pain in the ass now, I don't see any reason to cut ourselves off from a relatively significant chunk of Internet users, even if their choice in email provider is a little questionable