I was hoping Chromium OS would be more like ubuntu, if Google came up with a linux distro, that could really help boost Linux into mainstream. This cloud computing may be the future, but not impressed with the demo. I had high hopes from Google.

afaik, google currently has offline mode for certain Google apps, so there may be possiblility for offline activities. and again its very early to make judgment.

Where do I store all my mp3 collections, family videos, photos?
How do we play games on those (besides chess..lol) ?
Video editing, photo editing ?
Basic File management ?

From what I understand they are basically making it like a cellphone, where we only access information and do nothing with it.

What market share are you Targeting Google ? And you expect to compete with linux, OS X and windows with this ?
Epic Fail on the horizon ! Sorry Google

edit:
Thanks Gajadi for posting, I agree with you.