Windows Live Essentials 2011 appears on Microsoft Update now as an automatic/recommended update for Windows 7 users.
Be aware that if you have any of the Live software installed, this 250mb+ package will be downloaded and installed automatically, installing all of the Live software, even those you may not want.
Microsoft - really? You have to do this to make people use your products? How about giving us a WebDAV cloud storage folder that we can easily map to a drive letter - and put files of any size?