Looks like Microsoft has decided to stick with the "Hotmail" name for its popular webmail service:
"Just on the heels of another great release for the beta (M9), I"d like to share some interesting news to our loyal users. When we launch the mail service worldwide, it will be named Windows Live Hotmail. That"s right! And for starters, some of you will begin to see the Windows Live Hotmail brand show up in the beta – first in our Microsoft internal version (dogfood) and eventually in the public version in the coming weeks.
As we prepare to launch the final version of our new web mail service, we recognize the importance of ensuring that our 260+ million existing customers come over to the new service smoothly and without confusion. By adopting the name "Windows Live Hotmail", we believe we"re bringing together the best of both worlds – new and old. We"re able to offer the great new technology that Windows Live has to offer while also bringing the emotional connection many existing and loyal users have with Hotmail."