Apple Ends Complimentary 20 GB Storage Plan for Former MobileMe Members
After notifying former MobileMe customers of an impending iCloud storage downgrade in August, the complimentary 20 GB of iCloud storage Apple has offered to those customers for the past two years has now expired.

As noted in an Apple support document, affected members will be downgraded to the 5 GB storage plan that is offered free with iCloud. Apple also offers extra storage plans for iCloud users, with an additional 10 GB of storage for $20/year, 20 GB for $40/year, or 50 GB for $100/year.
Users who are currently over the free 5 GB limit following the expiration of the complimentary 20 GB will see such features as iCloud Backup, Documents in the Cloud, and iCloud Mail cease functioning until they bring their accounts under the lower 5 GB limit.
Apple replaced MobileMe with iCloud in 2011, giving paying MobileMe customers an extra 20 GB of iCloud storage as a complimentary gesture. The additional storage was originally set to be discontinued in September 2012, but Apple decided to extend the offer, giving MobileMe users another year of extra storage free.
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Top Rated Comments
The current system of purchasing additional space, running over the size limits, managing all of this - this is just not user friendly. This would cost Apple very little, but would mean much better experience for all users.
I think the point is that with dropbox, you can actually see what your storing and you decide what you want to do with it. Personally I think dropbox and other storage solutions are better. Just a personal opinion.
Per device would be a nice approach ...
Each new device would get a redeem code for 5 GB permanent storage. This way only the first owner would be eligible for storage (or pass unused redeem code to the next owner)