The Buzz Report: Good-bye, computer; hello, world! - CNET.com: "...which is that I think Google's going to build a Web-based thin client-type hosted environment-slash-operating system replacement. Or at least, they should, and that's only if Microsoft doesn't beat them to it."
More omnipotent-Google speculation. For a more objective reality checks, see recent articles in Wired and Time comparing the business fundamentals of Google and Yahoo.
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