Perhaps the question you're really asking here is "Why isn't the
*desktop* a browser?", not "Why isn't the *OS* a browser?"  

There certainly have been attempts to build browser-based desktops. 
Some of them are discussed here:
http://blogs.zdnet.com/web2explorer/?p=166


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Posted from the new ixda.org
http://www.ixda.org/discuss?post=45492


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