As far as my experience with Hello is concerned, I never used the service (even though I use Picassa) – it was a small feature in the entire product and somehow lost it’s identity over a period of time.
What’s really commendable is Google’s decision – how many companies have the ba**s to take quick decisions on services that are not getting enough traction?
Apart from political battles (within the team), there are lots of other issues involved while sunsetting a product – for e.g. what about users who are using the product? Whom do you migrate them to? What about pilferage? etc.
Bye Bye Hello. You won’t be missed!