Simply clicking on the link could be enough to get malware onto your computer. Alternatively you could find that you're directed to a fake Microsoft web page which asks you to confirm your ID in some way (by revealing personal details or bank details).
The 'Dear Email User' (rather being addressed to you by the name you registered your Hotmail account with) is enough to indicate that it's dodgy!
Further, just copying a random sentence from that email and pasting it into a Google search shows that the same email has been received by countless people for at least a year:
http://www.hoax-slayer.com/outlook-discontinue-support-phishing-scam.shtml