According to LiveSide.net SkyDrive will soon get unlimited storage for photos and office documents as part of the Wave 5 roll-out of Windows Live services.
The service will feature:
Unlimited storage space for all Office documents
Unlimited storage space for all photos
25 GB of free storage for everything else
SkyDrive has been slowly increasing its profile from a background stand-alone service to the fully integrated storage backbone for Hotmail, Windows Phone 7 and Office Live, and Microsoft is also pushing it now as a service for Android and the iPhone, with native apps for those platforms too.
The only element really missing is native Windows integration, a feature I suspect we will see a lot of in Windows 8.
Read more at LiveSide here.