Lots of missed points
But any so called netbook OS does not need to run applications (be they MS or Linux in origin).
Surely we are talking about a bare metal browser. A browser that that boots straight up with no under lying OS to speak off?
And if this is the case then the the browser itself, be it from Google or Microsoft or Opera or whoever does not matter.
So maybe this new OS (or whatever you want to call it) is closer to being an embedded operating system (like WinCE) because in this light weight user world, that is all that is needed
PS
Sitting here in a hotel room in Reading connected by 3G I can say for sure that the world is not yet ready for 100% cloud based apps if this is the best speed Vodafone can manage out here in the sticks next to the train station.