so basically it'll be a custom version of linux, with Google tools like Chrome etc thrown into the mix
Canonical has performed fairly well with Ubuntu but it'll be interesting to see if Google can "bring it to the masses".
Instead of good branding/marketing, Linux needs a good sales team to pitch to manufacturers. Linux will continue losing, until the manufacturers add to their custom builds: Linux (-$100) or Microsoft Windows(+$100)
EDIT: bleh I read from the bottom up (in terms of the front page) so Google Blog was last :) I see the source.