Google recently integrated most of their services. Google talk with orkut, google talk with gmail, docs (writely) with spreadsheets, docs and spreadsheets with google pages, Google groups new avatar in gmail format etc. A lot of stuff still needs to be done like photos with gmail and gtalk(maybe even docs). Then there will be search integration with spreadsheets, blogger with gmail (even gtalk with blogger...who knows!). And many more such small-big changes...
But what Google apps or for that matter other web apps lack is a server at the client end. I think we users think it's very unreliable to have a important document stored only at Google servers. I think there is a need for Google to use Google Desktop as a server at the client ends so that user may also work offline. This, in my view, requires a lot of innovations. Saying it easy but actually doing it may not be possible at all...due to concerns of size, memory requirements, reverse engineering concerns etc. But if done, it would be a definitive step towards a web based era of desktop computing and this I think is what google is about to do in near future.
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