I've been wondering about the same thing. Google has the "cost-leadership" strategy - they can offer a pretty good service that starts at 0 cost, and ramp up if you become popular. Amazon differentiates by offering more plumbing options, but you have to pay for each virtual machine. It'll cost you even if you only have 10 users a month, but you can tweak your machine more.
I suspect MS will compete more directly with Amazon, but charging for services instead of virtual machines. They're not as comfortable as Google with giving things away for free - they have to protect the many, many IIS and SQL Server installations that would disappear if the web install was cheaper. They also have to combat the issue of someone else giving a better SQL Server experience than them - they have to be "The Place" to host your MS-related technologies.
So expect to pay for each service instance (web, storage, sync, whatever) + some charge for usage. Maybe $20 for the service instance, instead of Amazon's $80 (or whatever it is) for each server.