Is it just me or is Outlook archiving dumb?

Is it just me or is Outlook’s (and Exchange’s) insistence on “archiving” items and restricting the size of your inbox just stupid and something that must irritate and/or baffle millions of users?

‘Would you like to archive old items now?” no, I would not!

How is an average user supposed to even know what that means? what’s an archive? where does it go? can I get it back? why are you taking away my inbox? In an age where gmail (or hotmail) can give me 2.8GB inbox for free and gigabytes cost pennies, what’s wrong with corporate email?