Check out this $199 computer, sold at Wal Mart :( that uses Google Applications on a Linux operating system. You can check out the New York Times article that cynically pokes fun of the "Microsoft Tax."
Additionally, you can check out some more of what Google is up to with its upcoming Gphone. The buzz seems to be at a frantic pace as of late. You can read more about the Gphone at Last 100 Blog. Wikipedia is already buzzing with an explanation of this phone. That's right, Google Calender, Docs, Maps, along with Google's other web based services (nickname GoOffice) will be available on your phone. Rumor has it that it may even be free, with users viewing advertisements as a trade off to paid cellular service. With all of Google's services, there isn't much a person will need a laptop or desktop for. Count me in.
Google is making a big push in many facets of the technology world. Many are scared that they will turn into the next Microsoft. While I am skeptical of large corporations, Google has a different business model (Wikipedia link). It is hard to argue with Google's price to consumers, which is free for many of their products, since they generate revenue from advertising.