At its recent Chrome Developer Summit, Google officials made more clear than ever that they see the Chrome platform as a strategic on-ramp for Google's services, with packaged apps and mobile apps playing a central role in that effort. As I've been covering recently, Google Chrome is, effectively, behaving much more like an operating system, in the sense that it is gaining plumbing and services that make it an effective springboard for applications. Now, a new 30-minute presentation video from the Chrome Summit makes very clear how Google is approaching this challenge. You can watch it here, and here are some more details about what it shows.
Google Docs has already answered the question of whether Google's cloud-centric applications can compete with standard productivity applications. The answer is that for many people, though not all, they can. They also steer users into Google's lucrative search/ad ecosystem.