The Germans have privacy concerns with Gmail, too.
On the other hand, Kevin Fox shows how Google will ask far less personal info of you upfront than either Hotmail or Yahoo. Should also note that Kevin is "is currently a user interface designer at Google Inc." Also, I signed up with Hotmail before the big M bought 'em, so I'm pretty sure I didn't part with so much info at the time. Though I wouldn't be surprised if I've gotten sucked into adding more later.
Now, you can be sure that all three of these are still gonna glean as much info about you passively as they possibly can.