TheGooner, you make a great point. No matter how great Google’s product turns out to be, Microsoft already has a huge lead, especially in terms of hardware and integration.
However, Google has certainly shown us a history of being able to innovate around those kinds of problems. Check out this interesting article in the Washington Post explaining why Google’s OS will probably be successful, and how that doesn’t necessarily constitute a threat to Microsoft:
http://www.washingtonpost.com/wp-dyn/content/article/2009/07/08/AR2009070804015.html