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Well it does have targeted ads like adwords in your search results. Yet they are far from annoying.
Reasons I like it.
1. Like everything google makes, it is very clean and not cluttered in the least.
2. The storage is very nice.
3. The spam filter has been kicking serious ass.
4. It is accessable from any pc connected anywhere.
5. It is annonymous so it works well with services like paypal.
6. It is not bound to my server, so if my server goes down I can still retrieve important emails.
7. I can store files I may need or want while on the road.
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