I agree with the above. The web is a tool. So are App Stores.
Both the Web and locally stored apps have pros and cons. As such, I don't believe the web will entirely take over from locally stored apps.
The pros for Web Apps are:
Always up to date.
Data can be made available anywhere.
Little or no installation required.
The cons are:
They need an internet connection (not always a given, especially if used on a mobile on Public Transport).
They can involved large amounts of data transfer (a major limitation with current mobile tarrifs).
What happens if you have a large amount of data stored in an app and the manufacturer stops it (as happened with Google Wave)?
What happens if the company hosting it folds? OK, this is not likely to happen to Google at the moment (I say at the moment because I have seen many companies who are the current in thing as Google is in the industry suddenly fail after they fall out of fashion), but how are people going to be affected if the bailiffs just come in and switch off the servers?
Always available, whether or not an internet connection is.
Will only transfer data if they need to, and often in a lot lower amounts than web based apps.
As long as it works with any new OS updates etc, the App is still usuable regardless of whether it's still actively supported by it's manufacturer.
Can be difficult to update.
Apps often need installation.
Personally think we are in the same cycle we've been in since the sixties..
Let me explain that. In the 60s, apps were run centrally on Mainframes and Minis, and shared amongst multiple users. The situation proposed in this article in different in only one way. The Apps are hosted in Data Centres that are run by hosting companies.
These gave way in the late 70s/Early 80s to Personal Computers running individual copies of apps, because of the percieved speed and power advantages, not to mention cost (not everyone could afford their own mainframe or mini).
I dare say that in 10 years, the same will happen again. We'll have been using cloud based apps for a few years, found that they are slow (whether thats due to problems at the hosting provider, or with the network) and move back to locally stored apps again..