... Honestly, I don't see this going very far.
... Looks like it'll be just a local interface for web apps, ... probably limit the hardware's capabilities at a local level ...
I grabbed the link Nightflier posted at thread top, emailed it to about a dozen of my fellow Windows developers, many dedicated MS fans (who secretly *nix in darkened closets

. All of them have > 15 years continuous experience, some going back as far as DOS with GW-Basic, and CPM.
To a person, their responses to Goggle's action can be summed up by one of the most Evanglistic MS developers I know:
" They are going to kill Microsoft pretty quickly. "
What you might not be considering is that the bandwidth of the 'net is going to continue to increase to the point that you won't know (or care maybe) if the apps and data are on a local drive or in a cloud. The other *big* factor will be what I call "tollware" ... you don't buy an OS or apps - you just get the pieces you need. One time, small fee, or continuous very small fee. The model is moving from Microsoft's "Money Machine" to the cell-phone plan.
I am not a Microsoft basher - I owe them essentially *two* full careers - and I like all the OSes (well, ok except OS2

...
but I think we are witnessing the start of a serious assault on MS.
my 2 bits
-Howard