I think you answered your own question - it's not targeting power users.

IMO it's targeting a few groups:

- Grandpa who wants to see all the family photos and is not completely behind technically

- Grandpa's kids who are tired of being tech support for him and also probably have lots of photos they would happily store with Google

- Generally, people 30-50 who want simple "just works" tech and probably will use the hotel discounts