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Respectfully... what is the point of this?

Performance will be similar to using Google Docs on Chrome. Memory usage will be probably worse since you are running another engine besides your browser.

Is it just for the convenience of not having to type the URL on your browser?

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I'm guessing it's for people that want the Google products to be their main desktop office suite. Haven't looked into it, but maybe it can open .docx files etc. directly as the default app for it?

It still remains a shim over the stock Google Apps then, right?

Sure, yes.

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