Just saw this story and went a tried it out. It's a fantastic service. It walks all over Apple's iWeb application.

http://pages.google.com/

Google Page Creator dynamic web page editor - Lifehacker

Fresh out of the Google oven, Google Page Creator is a dynamic web page authoring tool and publisher that lets you set up a web page at yourgmailname.googlepages.com.

Aimed at making creating a web page “as easy as it is to create one on a word processor,” get your Google Pages started by signing in with your Gmail account. Then say hello to 100 megabytes of free storage space and what sounds like virtually unlimited bandwidth. I played with Pages briefly, and except for the two three times it crashed Firefox 1.5 running on my Mac, it’s impressive and immediately usable (of course, not for you hand coding types.)