This would technically be the most barebones operating system ever implemented as according to them it has the ability to run nothing other than a browser.
I’d also like to see how they’re going to overcome boot delays without revolutionizing IC technology. If your operating system is totally stripped down, it will boot faster, but it’s still going to take time.
Google isn’t taking aim at Microsoft or Apple. They’re taking aim at taking the Netbook theory one step further. Those companies who actually develop functional operating systems aren’t going to worry.
If the OS primarily resides in flash memory, it can "boot" instantly. It won't really be a boot, it would be coming back from hibernation.