According to numerous reports this morning, Yahoo! has decided to eliminate the 1GB storage cap on its free e-mail as it has integrated Yahoo! Mail with Apple's upcoming iPhone, and expects demand to explode.

Apple previously announced it would include IMAP integration with Yahoo! mail when it rolled out the iPhone concept in January. With competition in the free e-mail space high, Yahoo! has chosen to up the ante and lift storage limits entirely, expecting a flood of media storage to happen by e-mail, particularly boosted by the iPhone's media capabilities.