From Matt Cutt's blog post about the Google Page Creator we learn

Oh, and by the way, it looks like Google has released a tool to make mini-websites. The Google Page Creator at http://pages.google.com/ lets you throw up a quick set of pages without a ton of hassle. Looks like a bunch of different look ‘n’ feel choices:

I feel like I'm in a time warp. Did Google just ship their own version of GeoCities? Isn't this space dead? End users have graduated from personal home pages to blogs and social networking tools which is why sites like MySpace, MSN Spaces and Xanga have tens of millions of users. Business users are likely to want an entire package like Office Live instead of just a web page creation tool.

Who exactly is the target audience for this offering?

Update: I just noticed that username@gmail.com is equal to username.googlepages.com. How do you ship a product with such an obvious privacy bug? I guess if you are creating a 20% project you don't need to have privacy reviews. Doh!