The same circle since the VAX (and before?)
1. Central Mainframe to run all your apps from (now the Cloud (and i hate that term!))
2. People prefer local computing power, and control over docs and ability to work offline.
3. Build apps to run locally.
4. Start trying to convince people its better to run apps from hosted server.
5. GOTO 1
so, lets look at this case, people have office apps locally, check. Google builds online alternative, check. Google then develop offline version to suit most users needs/wishes, check.
Now, whos turn is it next to start all over again.
Hey, i have a great idea, TV Set-top Internet boxes... i am sure that could work..