There are legitimate reasons not to use Google apps, mostly involving a loss
of control. You don't control the privacy, the storage location, or the
access. Google has a terrible reputation for support. People with
technical problems have had to wait weeks to get anyone to respond to their
need, and in the meantime there is nothing they can do, and no way to use
their email.
It might be working for you, Tom, and is good for people who need to access
their email from multiple locations, but that doesn't mean that's what
everyone else should be using. I don't know of anyone at City Hall who has
the capability of checking their email from a Blackberry, for example. We
each have one PC and that's it. We don't need to access our email from home
or on the road. So the advantages of cloud email are not so great here.