I use hotmail via windows live mail. Are we talking about the same thing? I had to go and have a look after reading your post. I never click on their (or anyone elses) ads. It's free and we do have a choice whether to use it or not. I also find that as long as your security settings are appropriate they are very efficient at separating the junk.
Dragging and dropping is easier than selecting from a drop-down menu? Sure, maybe, but your second point is relatively moot when the spam filter is as good as Gmails
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I have only ever had one false positive with Gmail and no spam has ever got through. Their spam filter is excellent.
I think we just about have too much Google, though their email is absolutely second to none. Have been using for years and cannot remember any spam coming through or so little I can't remember.