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Sounds like the conclusion is that Chrome OS is Linux, but only in the strict sense - the kernel and not the distribution.
It sure sound like a good project. Google gears lets you put all your javascript etc offline when net is not available. Even otherwise, all OS like components and downloadable programs of today can be converted to XPI's/Browser extensions.

Just move the tab bar at the botton, Bookmarks button in place of "Start Menu" and you have nearly got yourself a complete desktop. New windows with multiple tabs can act like multiple desktop features of Gnome/KDE.

If nothing else, it would be an interesting experiment, I frankly do not see any reason it can't be done by someone who knows enough of linux startup scripts, and desktop environments.

(comment deleted)
Google hypes what looks to be a Linux thin client targeting netbooks?

Call me back in 2010 or whenever GCOS arrives on the market, and I'll compare it to then-current Moblin and Linux distros and Microsoft Windows for the netbooks.

(And GCOS? Wasn't that an OS from GE? Fifty years ago?)

The big question is, will these netbooks and such running chrome os have all the linux tools available, or is this going to be a certified google world, with google package management?
will only run cloud apps. if your cloud apps aren't as smart and offlineable as google's, too bad for you.
that's what it is sounding like. lame