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Web.de thanks its popularity in Germany to
- being around for a really long time
- being part of a bigger portal with many services
- its short and neat domain
It also has a reputation of being quite reliable. However, indeed the storage capacity is a downside. I tried opening a Web.de account when I lived in Prague but a computer I needed to use somehow used an Austrian IP. So this allowed me to sign up for a web.de account, I however opted against it because I just felt incomfortable about lying about my location and using my old Berlin address where I did no longer live. I would say that despite the neat domain, the capacity offered isn't worth lying for anyway.
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