To address your points... Web Apps don't have to use the cloud - I suppose it's possible for a web developer to decide to locally cache all an application's da

To address your points... Web Apps don't have to use the cloud - I suppose it's possible for a web developer to decide to locally cache all an application's data but it seems like your grasping at straws here. It would require a developer to specifically disregard the overall philosophy of a web based apps and a Cloud OS. Don't get me wrong. In my perfect world Google would force developers not to do this but as it is I don't think it's something you're likely to see much of (my understanding is that Google is focusing on SD usage for media just to prevent this) On users value of functionality - Again the question comes back to one of "what functionality will they really be losing". Particularly with WebGL and Flash both available to developers I really don't see a functionality gap. Forcing Android to the Cloud - If you just desperately want to save Android you could absolutely do this but what's the point. If you're going to force everyone to the cloud and you can build your development environment around web based tools than why wouldn't you? More to the point why would Google spend a bunch of time and money turning Android into a Cloud based OS when they already have a Cloud based OS