Microsoft really is shifting the entire focus of the company and anyone who doesn't take Microsoft seriously will end up like Stacker or as popular as Realplayer.
The google web apps, they look horrible. I know they are all standards based and that will be there undoing. Microsoft is making people download some "extras" which I am certain will make whatever they create look like a desktop application, feel like a desktop application, but will be on the web.
They will come up with some simple html to get some access to phones, libraries would probably install a MS application so I doubt if libraries would cut people off from the MS services. Especially if they make all of the Hotmail users download that extra exe file of mystery code.
The google web apps, they look horrible. I know they are all standards based and that will be there undoing. Microsoft is making people download some "extras" which I am certain will make whatever they create look like a desktop application, feel like a desktop application, but will be on the web.