I have been using GMail and the Google Calendar/Contacts with my smartphones for a long time now.
I love it.
The over the air syncing is fabulous.
I used to use Outlook but had to sync my phone via USB or Bluetooth. It was a huge PITA.
For those people that don't have access to an Exchange Server I think Google is the way to go. You never have to worry about having your stuff backed up should your phone ever crash. Get a new phone, setup the accounts and BOOM all your stuff is right there again just like before.
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