And this is the logical conclusion of the death of the 56K baud modem. There was a prophetic (if early) contest at Sun to 'imagine the future' and the winner got a SPARCStation. As a networking guy I tried to imagine what was going to change when the 'big yellow hose' (which is what 10MB Ethernet looked like at the time) came right into your living room. And one of the things that changed was that you could work at '…
It took me a while to realize that this is where Google is headed with ChromeOS/Chromebooks. Ultimately, "applications/apps" will not exist, there will just be the web and all personal computing devices become thin clients. What to use photoshop? great, go to //photoshop.adobe (or something); Office? //office.microsoft; play the latest COD? //callofduty.activision. [EDIT: also note the importance of search in this scenario...]
I think google's bet is that just like CompUSA and other computer retail outlets have died, so too will "app stores" that sell digital equivalents of physical boxed apps. All apps will become services available openly on the web.
It's definitely exciting, though I realize it makes a lot of people scared and there are definitely security risks that need to be kept in mind. But overall I see it as another step in the democratization of access and knowledge. A few hundred years ago, only the privileged had access to resources enabling them to read and write and create things. A few years ago, only those with some serious cash could (legally) purchase a license to operate a copy of Adobe's products. Now, any kid with 100 bucks and a decent laptop can spend 3 months with the entire Adobe catalog available to them. Pretty soon, that "high-powered" hardware requirement will be gone and the market opens up even further and pricing will drop even more.
That's pretty awesome.