I'm with you on this. For Free Software it's not so important to control every widget and webapp that the user runs, it's far more important to control (ie, have the source for) the service layer. Today I can install apache on my desktop and serve my own web site from my house. I could do that in 1998, and I did. The problem with today is that most people would rather hand their data and lives over to a 'free' service that will host things for them than run a local web server. What good is a GPL browser running on a GPL OS when the only thing the user does is use twitter, flickr, facebook, pandora and google docs? The user doesn't control his data and it's locked up in non-Free services. I'd sooner see Internet Explorer on Windows connecting to a local AGPL'd service hooked in to a federated system.
The thing we need isn't more GPL'd HTML5 widgets but easy to install, easy to set up "cloud" type services that can connect with each other and do useful things that normal people want (and do it without being chained to a centralized corporate master.) If "running Linux" meant simple LAN sharing, like streaming video or audio between boxes and accessing your files from any device, instead of just meaning "my games don't work" then a lot of people would be on board. I know plenty of 20-something's who don't do anything application-wise outside of a web browser and would be perfectly happy with Linux if only it made managing music and photos easier (where "easy" is "no more difficult than filling out a form.") If syncing those up to the internet so friends can get them was easy, too, then that would be a killer feature.