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Great idea but I am not sure about the execution. Does it make sense to do it as a desktop app?

A browser based one seem better as kids could work at school and then continue working on their homework at home.

But then they would have to write the office suite from scratch (unless there is some open source browser based office suite available?).

Yeah well I actually think that would be a benefit as you would be able to think in social networks and other online services into the product.

Feng office is mediocre, but if someone put the time and effort into making it a great app, it would be perfectly suited to this task.