It's also interesting to note that this was the computing model used 'back in the day.' Everything was dumb terminals logging into a mainframe. Looks like we had it right the first time.
There's always been this kind of pull between putting more smarts at the end points vs having everyone login into one behemoth multivac (mainframe back then, the Internet now). It's obvious that Google is putting its stock in the latter approach. I would go out on a limb and say that computing has been heading in this direction for a long time and companies like msft have slowed it down as long as they can but the flood gates are about to burst open..
This should definitely raise some eyebrows over at W3C.. This is a huge development.