I feel pretty confident about this. If nothing else,
Google will launch a service just like
Goowy.
Goowy is a full-featured online desktop, and I'm *very* impressed with it. Goowy includes a cool interface, a desktop that holds links for all applications, a 'minis' page that holds
widgets, an IM application (connects to
Yahoo,
MSN,
AIM, and
ICQ), an online file storage drive (2 GB), a mail application (2 GB) that uses Adobe Macromedia Flash and does everything that MS Outlook does (drag-and-drop, mail alerts included), an address book, a calendar, and a set of nice Flash games. All applications run in windows that share screen space in your browser window. It even has a small taskbar that can be used to switch between applications. What's more - the taskbar has a Google deskbar like search box that allows you to search directly (I would rather the results showed in a window within the same window, but currently, the results open in a separate window). Here's what the taskbar looks like:

Goowy and Google deserve each other. Firstly, the names are too phonetically similar for coincidence. Goowy would fit right into Google's tools. Even now, I can imagine a
Writely icon on the Goowy taskbar. This could prove quite strategic. An entire operating system on the Internet. It goes wherever you go. No need for installing anything - all you need is a PC with a browser and an Internet connection. You can do *whatever* you want to without worries of security, configuration, updates, crashes, storage space etc., etc. Google sweeps the floor from right under MS's feet, without even entering the operating system market.
In the mean time, I give Goowy five stars for innovation and implementation. I can't wait to see how
the cookie crumbles.