Similarly as saying that in a bigger team of 10 ppl one could implement it in house, in 2-3 there's no actual need (and setting up a reminder is trivial).
I'm also thinking to people that aren't working full-time (for whom a 3-day/weekly report would also be a nice feature).
I can't imagine I'd ever pay more than a $100/month for a team of any size, because at that price, I should probably just have an in-house dev develop a similar system.
I like the idea of an e-mail based solution, but with such a simple concept I don't want to be tied to e-mail. I want it to be web based, I want it to be email based, command line, and I want to use hubot in campfire.
At the end of the day this gets rid of the daily standup, which I personally find tedious. I typically get little to no value from them, and feel they are more of a management tool. This sort of thing gets me out of meetings, which I'm all for.