I don't know about your situation, because I don't care for reading my Hotmail through "mail" and still have to go to the Hotmail website and delete messages through a browser (even though my settings are set to delete messages from the server). I can delete my Exchange/Outlook messages from another email address though, so I've always figured it was just a Hotmail thing.
I'm having a different situation with Hotmail that is bugging me.
When using the browser to view Hotmail, it used to wrap the text (no matter what the zoom level) so all I had to do was scroll down to read lengthy messages, i.e. forum subscription digests.
Since the 2.1 update, the text wrapping doesn't seem to work and I have to scroll across to read a very long line of text, then scroll back to read the next post. Very annoying to say the least.
Not every page loads this way. MyPoints.com messages resize fine and I don't have to scroll across. Forum digests seem to be the things that don't wrap anymore.
Any thoughts on this one? Do you experience inconsistent wrapping of text if you retrieve your Hotmail via the browser?