for some companies yes internal servers are great, for some outsourcing is great.
Here we have me for all IT work and they are really cheap when it comes to any IT expenditures, most of our infrastructure needs to be replaced as it is, and for us the cost of moving to google apps was a great idea.
I understand for some it may not be, I am just saying that it should not be written off out of hand like it was. I have been using gmail since 2004 when you had to have an invite to get on and i tell you this is the first outage that has affected me at all, and it only affected use of the web interface, so its not too bad, and since we have an sla with google we got days added to our contract for free too.