Earlier quoted context omitted.
And those people don't know what Google Docs are either. And when they get an Excel document where charts don't render correctly, or comments are screwed up, or pivot tables don't work against their datasource, they'll be POed. Or when all their friends are playing WoW and they realize that this device doesn't play it. Or when they want to Skype with their grandkids they realize, they can't do that. Or when they take…
I pretty sure Google knows all of this. And are counting on it. They want them in people's hands, and they know once they are, all of those problems play into their vision. And those people don't know what Google Docs are either. And when they get an Excel document where charts don't render correctly, or comments are screwed up, or pivot tables don't work against their datasource, they'll be POed. Google likes this.…
I don't know if you really understand how many people play WoW. Most of the avid WoW players I've known have not been "hardcore gamers" and they've played WoW on really crappy computers, with Intel GMA graphics and everything. There are many normal people that wouldn't drop the cash on a video card that play WoW.
Also, you didn't address things like downloading pictures from a camera, syncing with an MP3 player (not necessarily iTunes/iPod), or any of the other local, non-browser stuff that a normal person does all the time.