I have been using hotmail since I first got connected. Its big advantage was providing continuity through several changes of ISP, although I keep the ISPs mailbox. Handling them all through Thunderbird, I keep all the emails I think appropriate in Local Folders on my machine along with my address lists and its a fairly simple matter transferring between machines.
I cannot think of a circumstance where holding personally important information at some unknown location, at the whim of some unknown body of people, dependent on my being able to connect, is a good idea. This includes this nebulous "Cloud" that the computer press thinks is so wonderful. mostly because they have yet to experience a serious failure.
I notice that Hotmail is going through a renaming exercise, going to call itself Outlook. Hopefully it won't do any damage. Purchasing your own domain is probably good, but only as long as you pay the rent. When that stops, or is missed, say goodbye to anything saved there. Same problem as the cloud, with the added attraction that there is the chance that your domain might not be findable. I did know someone a while back who had that exact problem.