Lets Just compare Google Docs with MS Office suite. MS Office Suite needs not only its own bulk of a software but also below that we need entire Windows OS which would need a certain set of PC hardware setup.
Google Docs may not give us a full array of document editing facilities like MS Office but it works out of a browser, can be remote hosted and then it can work out of minimal of the hardware setup.
Now when we see the announcement in the light of this comparison, it suddenly means that there is now a killer app possibility here for low end PCs and Notebooks. Just imagine what if Google would release local version of its “Google Apps” service, that too free of cost!!?
Finally old PCs and laptops may come out of the closet :)
But then .. aren't we creating another Microsoft out of Google? What if they pull the plug on us someday ?