Anything Google announces is big news, and understandably so. Google’s recent street view extension to maps, etc. and the most recent Google Gears are all really cool and opens up tremendous possibilities for the future of software and technology in general. (Here is a brutally honest investor focused perspective).
As the author points out, Google is fundamentally a search and advertising company. Most other products or services from Google have been variations of existing services such as photos, gmail, groups. etc. and have produced little or no revenue. But for all the hype and hoopla over Google Gears, it is still going to be a while before Google can really threaten Microsoft’s dominance of the desktop.