Websites are going to become indistinguishable from desktop apps. The lines have already been blurred by apps like Flex/Flash, JavaFX, Silverlight and more even more so with Adobe AIR and Goggle Gears. In the near future, instead of downloading and installing software you will simply visit a website and the browser will be running the app you previously had to download and install.
In this respect MS is right on the money.
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