I created a small table with about 150,000 records in order to do some aggregations. There are some prerequisites to comply for, but that is easily done with replace function.
With Azure, it took almost 4 times as long time as SQL Server Express on my old development machine to complete the query.
With this simple test, I find the use for Azure very limited, as of today. It is excellent for small companies who is not hosting their own environment themself. For companies on a web hosting company which doesn't support Microsoft SQL Server it will do just fine.
But today, almost all web hosting companies today offer some other database solution.
If a small company host their own web site, SQL Server Express will be a better choice.
And then again, Azure is still very new and performance may increase in the future.
There are also some things I miss in the Management Studio. The best part yet is the Azure and SSMS integration! It works great and you hardly notice the lag. There is a second lag after clicking Execute until the execution starts, for example.
I am looking forward to the future development of Azure!