Whoosh!

Perhaps. Perhaps not. Google was dreaming of ChromeOS, where the browser would be the only local app. Android ate its lunch. Besides handsets there are lots of Android tablets in the pipeline now, probably netbooks soon. Besides the plain fact that a local app is going to outperform a cloud app there is the mercenary fees available when app stores sell downloadable apps that few would pay for access to the same app on a hosted basis. It might be irrational but it is real.