I DO agree with everything...
but I completely FAIL to understand how somebody (yes Michael, I'm looking at you) can agree with 'just about everything' while simultaneously not agreeing with 'most'. FAILure to grasp the English language I think.
Web Apps are certainly not a perfect replacement (atm) for the current generation of business software. No, progress has FAILed to be remarkable. What, do you think MS are not going to add more bloat in the guise of features to their business apps while webapps catch up? FAILure to grasp basic business sense, too.
Web apps are an important compliment to 'traditional' software, but there's no way they're ever going to replace the "'software running on a pc' paradigm". WTF? Come on dude, 'software running on a PC paradigm'? You should lay off the acid - what do you expect apps to run on, whether they're web apps or real apps? Your dishwasher? FAILuer to understand, well, just about everything about technology really.
And finally... "applications running in a browser, aka 'web applications'" Of course they're fucking web applications... That's why it's called a fucking Web Browser. And no, not all of them run "on the web", but you're FAILing to distinguish between internal web services and the world-wide-web. They're all 'web's, just not all of them are publicly accessible. That's why the software that serves them are called Web Servers, or Web Application Servers, and half of the web apps that run have the suffix 'war' for 'Web ARchive'. Total FAILure to understand the web, web servers, web apps, web app servers, the whole fuckin shebang.
Now how d'ya like THAT for sarcasm.
(And I count 8 FAILs - and I'm only just getting started... My colleagues are gonna hate me by the end of the day)