It certainly was cool and popular from day one. However, it was also spyware from day one. Tech magazines wrote reviews about it, but the hype train was going so fast at the time that people somehow ignored the privacy aspect.
Nowadays people are beginning to realize just how evil it has always been.
And not just a little bit of convenience. At that time, Hotmail had like 14 MB of space whereas Gmail had 1 GB. Before, you were constantly out of space, whereas Gmail users could keep on going without ever deleting anything.
Would you rather walk if you could have a personal uber driver with a Mercedes? Well, the driver is super creepy, but least the seats are soft. He will take you everywhere for free, but will also know everything about those rides and the conversations you had during them.