The idea of a netbook whose OS has to be constantly online is probably
not going to click
Especially in a place where they define broadband with 256kbps and stop
there.
But as mentioned the offline versions of google docs etc would be there

I believe from the announcement, that, it's a linux kernel on which you
will have a Gnome or KDE like interface
Probably something androidish version of an OS I assume.
All things like Office equivalent software might be online or even their
offline versions might be available.
I believe that you'll be using your own software and hardware

But maybe there is somethings that are online.
I think Google might try to formalize Google Drive for file storage on
their servers
But with everything coming out of beta, I think that most of those
elements will be incorporated into the OS

But things which are of concern is:
1) How much of it will be online
2) Virus-free?? That is generally something that's attributed to the
linux kernel because of its OS approaches not due to google doing the
code really good.

Lets wait for the beta to come out and then decide.
It is a bit scary, google pretty much has all our lives in storage. 
(1. Email, 2. Orkut [social life], 3. Youtube [preferences])
Should one company be in control of such a huge part of virtual life?

Antony

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