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Trust, performance, and ubiquity
Right on - Google is less trustworthy of my data than Microsoft or IBM as far as I'm concerned.
I wouldn't call the web browser an interface "of choice." It's just that's what we're stuck with using the current web based technologies. "Browser" and "totally user friendly" are oxymoronic. OWA, Google Maps, are okay, but you can't compare OWA to Outlook.
The other comment about off-line access is spot on. The internet, and high speed internet, is not as ubiquitous as Google might have you believe.
I've also heard that the open-source philosophy isn't about "first quality", but is around "good enough". That was what was bounced around when OpenOffice first appeared. It wasn't as good as Office, but it was "good enough" for most users.