Is this credible news? Building GDrive seems completely incompatible with long term vision of Google (Chrome OS, Android, etc.) (at least vision implied by listening their earning calls).

Also sync'ing with local storage means allowing users to use non-Google Docs editors (MS Office) and all these cool collaboration things Google Apps are useless when you move in Gdrive mode.

Maybe building a good iphone/Android app to edit google docs online would be better investment of their talent?

And, on side note, as cloud storage becomes integral part of our lives, the companies which will win are not the cheapest one. But the ones with the best customer service and quality of product.