Did you hear about Google Gears? It lets you use web based applications while you are offline. So you could use Gmail, Google Reader, and Google Apps. BTW, Gears is Open Source.
I noticed support for it in my Google Reader a while ago. I just read a news article about it. Firefox 3 has plans to support this as well. I read about it a while ago. They were waiting for some provider of web based applications to start supporting the idea, which now Google is doing.
The thing is, I don't see Microsoft supporting this kind of innovation since it competes with Office specifically, and Windows in general. That means no IE support for the latest web innovation. But with Microsoft's push for their Live products maybe they will support it. I guess we will see.
I still think we are within 5 years of seeing a very significant shift with Microsoft's position in the industry. The web and the web browser is becoming the platform Microsoft feared it would be. It is competing with the windows and office offering. Now with their move into patent litigation and Paul Graham's observations on their demise, I believe things have been set in motion. John Dvorak said they are going the way of the IBM years ago. He was especially vocal about it during the Lindows AKA Linspire fiasco.