I got the email two days ago, I'll be honest I'm super pissed.
Like many others I've offered my family an email address under my custom domain. They've tied their phone to it, and are now using it for Email, Drive and Photos.
This decision will force me to pay $300+ per year, which I cannot afford. I have to tell my family that they need to find another email/drive host, and transfer 15+ years of data over there. My mom and dad are 70, they'll never be able to do that.
I'm afraid for the photos especially. The last 15 years of our lives are stored on Google's servers. And they're offering absolutely no way out. There's no tool to migrate all this to a regular Gmail account. Basically we're fucked.