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Web based mail is when you access your email directly on the internet using their interface, as opposed to downloading it into an email client like Outlook Express. I know Yahoo has web based email. I'm assuming gmail does but I've never been there. Things like Excite, Lycos, Hotmail, etc. all have web based email.
Although, just because they have it does not mean you cannot still download it from the site into an email client, if they have POP and/or IMAP.
WEBMAIL main benefit is you can access your email at anytime from any computer using a web browser and the webmail portal's interface. main negative is you have to have an internet connection active and working to read your emails, even ones you've read before, and your address book, etc is out there too. No internet, you're effectively cut off from the whole thing.
POPMAIL Main benefit is you can access and read your email on your own personal computer/laptop whether you're internet connection is currently working or not. Email previously downloaded to your computer is accessible at anytime as is your address book. You can even compose new emails or replies while still offline and they will be delivered later when your computer goes live on the internet again. Main negative is that if you don't have your computer with you, say on a vacation or time away, you frequently have no access to historical emails and address book. You have to wait til you get back to your computer.