Source:
http://www.zdnet.com/blog/security/hotmails-new-security-features-vs-gmails-old-security-features/6509

Juha-Matti, please SUMMARIZE the content that you alert us to. Since you already read it, and deemed it important enough to post here, even short summaries will save each and every one of us countless seconds [become minutes [become hours [become days [become that much shorter spans of lives]]]].

So basically the only feature Hotmail added that isn't already in Gmail is the option to get a temporary password sent to you by text message for use on public computers.... Wow, Microsoft.

Wow indeed. Maybe they ought to drop the Windows Live from the name, and call it Agooglsynchronous Hotmail instead. http://blogoscoped.com/forum/171101.html

Agreed, Hotmain remains underwhelming.

But props to Hotmail for offering single-use keys. I think this is an extremely worthwhile security feature for users who access their email from random internet cafes while travelling.

Agreed, it's a welcome extension—provided it has been implemented "just-so" from end-user's perspective. Which, alas, I doubt the Microsoft to be fully capable of.

Assuming SMS delivery of the single-use keys, and not [another password-protected] IM or similar, and given the plethora of cell networks operating in any one country, the Hotmail account will presumably need to be set up in advance with prefixes to the chosen one(s), since such could never be extracted from IP-requests alone. But that indirectly opens up a new vulnerability while closing another – because, if one's cellphone gets stolen, the knowledgeable thief only needs to discern (or brute-force synthetize) the Hotmail address of its "previous owner" to gain access to the account, and do the dirty.

ianf: I'll add a summary next time, written with mobile browser or desktop machine :)