Though I agree with the article's premise that we're quickly moving towards Web based computing for the masses, I don't believe another browser will have any impact, no matter how much it might enhance the local abilities.
The reason is that to remove the Operating System, you need hardware, a browser alone won't do it. Google might hope that other vendors will adopt their browser, but it's much more likely they'll do the same themselves and create another proprietary browser from the Mozilla base.
It might work as a development strategy though, since they can use the Windows platform as a development base and then eventually remove the need for it. If they could then be in a position to partner with hardware manufacturers they could compete to provide an already functional portable browser.
Personally, I'd expected to see all of the game consoles provide a browser, since these systems are actually much more powerful than most PCs of their generation. For many these would be sufficient to replace their daily use of a PC for email, online personal business and other web based functions.
In a completely home use scenario, where business apps like Word/Excel are rarely needed, the PC is already basically pointless, all most really need is a good browser. I'm already there myself and have been for almost two years, since I only use Office for business purposes, mostly on my laptop.
The missing component here though is a media engine, since getting Adobe Reader (PDF), Video Streaming and at least viewers for most major apps from Office, etc. will also be a requirement for success. You don't need to provide a full featured Office suite or media player, but people will expect to read what comes attached to an email or view their online media. These are other components that come bundled in the OS now or as add-ons that won't be so easy on a closed platform, as the smartphones have already proven.
This is why I believe the first step will be the evolution of other more closed platforms like the gaming consoles, followed by the development of the high-end digital HDTV market which already contains a display. The 'PC' [dedicated display engine with browser] itself is really quite cheap to build if it doesn't require a hard drive (little to no local storage), case or power supply, since these could be provided by the HDTV. It would probably cost less than $100 and could likely perform the control functions for the TV itself, further reducing cost.