Google announced today that it's new OS will be a cloud computing web appliance, which is a little different that what was expected. It won't really be an OS, but instead will be more like a portal for full blown cloud computing. They are releasing the source code, as well, starting immediately, but the Google release of the end product won't be until next year. This news is a little disappointing seeing that cloud computing is still so young. It could still make improvements in productivity, by allowing traveling persons to have a quick and mobile OS, but probably will do little for more stationary persons.
See more info, from this article from infoworld.com, about Google.