While I'm all for browsers getting better and more "app-like", I think the idea that eventually all applications will be replaced by the browser is naive at best.

There are a great many use cases where an actual application performs better than a browser (you can search on google for discussions about iPhone native apps vs. web apps, or specifically there's been a bunch of articles on daringfireball.net)

You can make the argument that web apps will keep improving, and therefore eventually will overcome these limitations, but that's a pretty big bet.

And I'm someone who does most of their computing in a browser. A while back I forced myself to use a Windows 7 machine for six months, and because almost everything I do is in the browser, it was much easier than it would have been a year ago; but far from ideal.

I suppose when this magical day occurs where web browsers can perform all the same functions as a dedicated app (including a UI which isn't sub-optimal), I might reconsider.