One thing that turned me off Chrome OS, was Google's original statement that it won't support installed apps.
After Google's phenomenal presentation at Google I/O 2010, I am not so sure anymore. One thing that Vic talked about, was the ability to store your apps and related data on the web. So you can think of a machine with a set of local apps, as a cache of a specially configured web page (kind of like your My Yahoo page).
Allows you to have a Chrome OS with local apps, which are all technically, just a reflection of a machine that is on the web!
Of course, I still don't understand why I would call that OS Chrome OS and not Android.