Yeah I've heard the same thing... but I wonder what happens if your net is down or otherwise unavailable? What if you're out and about with no mobile internet? Could you use a web version of Word over wireless internet? Would you want to? Could you afford to?
It almost seems like just another way to stop people copying the software, by removing the program from the machine so the code is always server side. Good idea, and potentially great for doing complex stuff on slow machines (with a comparitively fast connection). How far could they go with it? Games run on a server and you merely see the rendered picture streamed to your pc?
Re the current Vista... I'm using it to play Fallout 3, generally without issue. But the one gripe, which seems to be the game rather than the OS, is that after a few hours play it thrashes worse and worse until you have to quit. I think it's quite leaky with the release version. Would be interesting to try the same with Xp...
Rakku