So far, so good.
Alas, that's as far as it goes. An infinite amount of money can't make Google Docs anything more than a pale imitation of the desktop office products of 1990. The very, very best web-based applications for creating web pages have about 2% of the power, functionality and performance of FrontPage 98. As in 1998.
Jobs much vaunted  iPhone web apps don't work when you're in an airplane, a tunnel, inside the bowels of an office building, in an elevator, in a remote cabin, outside the US or anywhere else that AT&T's network isn't performing at full speed and top quality.
Just stop it.
Give me thick client applications written in Pascal , C, assembler, FORTRAN, C#, Python ... even Java ... any day. I don't care how painful it is to code those suckers, that's why I pay money for the products.
Ok. I feel better now.
 The primary challenge to Microsoft's dominance of the desktop came from ... Microsoft. They weren't unique, but IE did set the standard.
 I can only pray these are a delaying tactic to allow a true SDK to come to market -- which Jobs has sort-of promised us.
 I've never seen software that performed as reliably and as efficiently as the Mac Classic applications written in Pascal. I think they were even relatively immune to typical hacking measures. Just saying.