NeoWin has some more information on the next version of Hotmail, codenamed Kahuna, which is planned for later this year or early 2006.
The service's key new features include (they claim) better spam protection, a great new layout (see screenshots) and better contact facilities. Also of note is the massive space increase planned (2GB), keyboard shortcuts and clever auto-complete code in text boxes. Rich text editing has been improved on, as have other existing features, like phishing protection. The design attempts, and succeeds, to be clean and clear. It makes a welcome break from the cluttered and over-whelming design currently in use.
Taking a quick look at the screenshots I must conclude the new Hotmail definitely looks clean, and a lot better than the current version. More details and screenshots can be found at NeoWin