I've just been reading this post over at hyperorg.com/blogger/ about the Google Browser. It summarises what has been said on most sites about the accumulating businesses that Google is acquiring and how they can use them to make the "ultimate" browsing experience. The blog then goes on to say
"And it wouldn't be just a browser. It would let me work with the information I've found: Manage my photos (Picasa), manage my desktop files, translate documents (Google Languages), shop..."
If that's what Google's aiming at, they need a file manager - They have a File Manager though, called Google File System.

I think Google are close to something else here, and i agree with hyperorg.com, that it won't just be browser. I think it will be more of an online OS. From anywhere in the world i will be able to work and save my files in what will feels like a local environment via something like The GMail Drive shell extension, check my email via Gmail, i'll be able to use Google IM to contact friends, photos through Picasa, and even browse around a map of my area via Keyhole.

Its not as if all this isn't possible now (except for the Keyhole bit). All they have to do it wrap it all together for your desktop (Google Desktop/Deskbar) now and it starts piecing together.