I think you missed this sentence. "Please note this change has no impact on our existing customers, including those using the free version." Still, I'm on free google apps mostly for a personal email domain too and will likely start considering alternatives just in case.

I'd also note that the $50/year is also per user, so there's sort of an opening to offer a family, personal domain type service. For a family of a maybe 2-6 users, the $50/year-user is a bit steep if you're mostly looking for a small group email + calendaring. Maybe that would even be an interesting vector for starting a new family-based social networking service.