What I thought up, was not only possible, but seemed to fit with the Google Products and services that are currently in development.
Well, how about if Google created a web based desktop maybe from your personalised homepage, you log into your account, and you are presented with a desktop like system, allowing you to use the browser like a desktop.
Google could integrate gMail, Blogger, Picasa, Google Maps, Google Search, Google docs and make them all accessible from this one page, and if they do ever offer GDrive, even your files could be included here.
With the advent of Google desktop searching through your machines, Google could transmit the files on your PC, send them to Google, and sync files from other PC’s so that everything is backed up on your own PC whilst at the same time available from any PC that supports a browser, you’re your information being synced all the time through Google‘s servers, you would have all your information in place on your PC should you not have a viable internet connection at any time to connect to Google.
Google could easily create a Linux based operating system, but the distribution of such a system would put them at immediate loggerheads with Microsoft, and as such they would have to offer something pretty special to win anyone over here. Or they could offer a operating system, and let you log into it remotely, removing the need for distributing the software, they could push all their services through this service, just like Microsoft pushes their own services such as media player etc
You would be able to edit your files, edit your spreadsheets, and text files.
Picassa is there to assist with the editing of photos, and publishing them.
There would be no need for any other software, apart from Google Desktop which deal with the synchronisation of PC’s to Google’s servers.
When I have more time, I will post more on this idea of mine, and may even create some screen shots.