I'm not that familiar with Chromebooks...could they potentially compete against a product like the MS Surface for users looking for a more "PC-like" experience with their tablets? Frankly, I've always thought Android to actually be a more robust platform than the Chromebook, which by my understanding is basically just a light-weight host for running a Chrome browser? [not sarcasm, these are legit questions]
Yes, Chrome OS is just a web browser and is really limited for now. However, it has very powerful abilities thanks to Packaged Apps and Native Client (NaCl).
Packaged Apps deliver an experience as capable as a native app, but as safe as a web page. Packaged apps look and behave like native apps, and they have native-like capabilities that are much more powerful than those available to web apps. Packaged apps have no traditional chrome: the omnibox (address bar), tab strip, and other browser interface elements no longer appear.
Actually, the apps in the Chrome Web store are just "glorified bookmarks".
Google said this will change pretty soon. There will be a new category for those glorified bookmarks that will be rightfully called "websites". Then, the powerful packaged apps will be in the "apps" category. They will be available offline and from any computer, always up to date, and able to communicate with devices like USB drives & Bluetooth speakers.
Here's Why Google's New 'Packaged Apps' Are Bad News For Microsoft
Google bares Chrome's Trojan strategy with native-style packaged apps
The
Native Client open-source technology is designed to run native compiled code securely inside browsers. Native Client puts web applications on the same playing field as local applications, providing the raw speed needed to
compete with traditional software like 3D games, video editing, and other applications. Native Client also gives languages like C and C++ (and eventually others as well) the same level of portability and safety that JavaScript provides on the web today. Actually, a number of
Xbox and Playstation games developers are in the midst of porting their games over to Google Chrome Native Client. One of the most important benefits of Native Client : You get to re-use your C/C++ code on the web. Note the word "re-use". For example, iOS developers could simply port their same code to Native Client instead of re-write them.
Of course, it's possible to combine Packaged Apps with Native Client. In short,
everything you can do on Android or Windows will be possible on Chrome... VLC, Photoshop or Crysis even without internet connection on Chrome OS. But now, Google needs developers to create those
new apps. What's really interesting is that the Chrome browser is available on Windows, OS X, Linux, Android, iOS... then instead to create apps for each platform, developers could do it on Chrome only and have their apps available everywhere. A game-changer!
Chrome OS is still in its infancy, just like Android was when Google released the Nexus One. It's not good for now because it has no apps... just a "web browser". But in my humble opinion, I'm pretty sure that Chrome OS is the future and I'm already excited about it.
Edit: I found even more evidence about the Nexus 11. Google is actually testing two new arm Chromebooks named "Peach Pit" and "Daisy Spring". The Galaxy Tab 11 and the Nexus 11 in my opinion.
Peach Pit & Daisy Spring are for
Princess Peach & Princess Daisy from Super Mario. Daisy and Peach are best friends. Nintendo's Mario Power Tennis website said that Daisy is Peach's
"sister in arms". Just like the both
arm Chromebooks which are pretty close... Just like the Galaxy Tab 11 & Nexus 11 which are also pretty close. Coincidence? Also, I learned that the one codenamed Daisy Spring is an Exynos 5 Octa-Core... Just like the Nexus 11 is an Exynos 5 Octa-Core. Coincidence? Honestly I have no doubt, the Nexus 11 and Galaxy Tab 11 are Chrome OS devices.
There will be more and more convergence between Android and Chrome OS. Google will offer the best of both worlds as Linus Upson said.
I believe that there will be Androidbooks convertible with the full version of the Chrome browser (apps/extensions). Also Chromebooks convertible that can run mobile apps. If you want a convertible but have more interest for the tablet side (for consuming), you will buy an Androidbook. If you want a convertible but have more interest for the laptop side (for productivity), you'll buy a Chromebook. The problem with the Microsoft Surface, is that it may work in tablet mode, but in laptop mode it is a calamity ! At least, Google gives you more choice. This is just my humble opinion.
PS: Excuse my grammar, I'm not a native english.