freitasm: My parents-in-law have a Google Apps account. My wife's domain has a Google Apps account. They would never in this world be able to setup this - buying a domain, registering with Google, updating DNS, configuring email clients.
There's a place for ISP provided email. Telecom did great moving to Yahoo!. Telecom did not so well by keeping @xtra.co.nz addresses.
Yes but they could get an email host to manage that all for them with a domain based email address. I am a bit surprised that there are companies that provide third party support for setting all this up, but probably little money in it