I live in my browser, but let's face it, so far, the Web 2.0 is not going to where their supporters want it to go. I remember reading that Vista would be the last BIG OS from Microsoft, and that the next version would be more centered in the web, as the world was moving there.
Until now, nothing has moved to web, and despite the mass media constantly repeating the desktop app (and the PC as well) is dead, and the future is a thin client (this brings back a strong resemblance of the Java craze back in the 90s), the only thing the Web 2.0 is offering is tons of services for social interaction, and for more exotic needs (just take a look at the participants in the latest TechCrunch40). Lots of services are launched everyday, venture capital is coming from god-knows-where, and 99% of those do not have a chance to actually being noticed before being swallowed by some big company (which, incidentally, uses to be centered around the "old" paradigm) for an insane amount of cash. I'm wondering if we're in the middle of another bubble...
Instead of creating useful services to replace desktop apps, and thus make some chores less tiresome, I see that startups are creating other needs to be fulfilled (just thinking in the new Twitter fad), which means we're not going anywhere (actually, the best way to update your Twitter is using desktop apps!). As you may expect, most of these services will go either unnoticed or face a slow death. Let's not even talk about the technical aspects of a future computer experience based on the cloud, just like you guys mention, it's nearly unfeasible, and pretty stupid on part of those proposing it, primarily because of connection limitations (the majority of the people isn't connected through a T1 connection, much more the opposite), security considerations, etc.
Fortunately, we also has some real options. Google, for example, has created really robust services, which truly act as a substitute of desktop apps, and so are doing Yahoo! or Microsoft. We also have other important services, like Last.FM, Flickr or Zoho, which cover other particular needs of people. I said it some other time, the computing world is going towards synergy between the web and the desktop, which is fantastic. Both are different paradigms, with their good and bad things, so that's why there's no such thing as the replacement of one by the other, some things are done better in a browser, others in a desktop. The combination of the two is where the power resides, and fortunately some people is noticing this (like the Mozilla guys with their Prism project).
Perhaps for people with simple needs when it comes computing (mail, web browsing, IM, etc.), a web-based experience could be enough, but even then, I'm sure at some point they'll want to do something else, and they'll have to resort to desktop computing.
</Web 2.0 rant>
PD: Also one thing that bugs me. Web services are constantly changing, but unless someone is reporting what changes are introduced (either someone from the company or an external person), every time they do that, and you log in to your account, you have to rediscover the site again, because it's not only that they introduced new functionality, but also they changed the place where things used to be. The primary example is PhotoBucket, which has changed 4 times during a 6-month span, breaking my old use habits, and forcing me to relearn where things are located.
