Google executes the code it owns to process data that you own

Google Chrome OS will allow you to run a browser on your PC. A browser that is Open Source but is really designed to provide a framework for web applications based on HTML and JavaScript standard for Web Applications to render their output to the browser tabs.

Of course though the browser is open source, the servers that ultimately master the content for the user run proprietary and closed source code. But that is another story.

Now the code that powers your PC is really on the server unlike the Windows Operating System which resides on our hard disks. Thus each time we wish to avail the services of our Netbook/PC we will have to authenticate with a Google Account. You don't run the code and
Google executes the code it owns to process data that you own and render it to your Open Source Browser.

Now what are the pros and cons of the cloud based solution that Chrome OS provides:
Good
1. There can be no software piracy (at least not in the form it exists today).
2. All computation code will run on Google's servers which can be optimized for a variety of workloads. This in turn could result in more energy savings.
3. Your PC will not hang if it is running something really demanding CPU time. Your other tab may well be rendering data. You will not be frustrated.
4. The cloud manages the backups of your data.
5. Lower Costs as Google will not charge you for using their systems (hopefully).
6. No data migration cost. Store Once Access Anywhere
7. Less Redundancy. All videos, movies and songs will be stored online and shared. There may well be some controls in place to prevent copyright issues. But better compression may be in the works.

Bad
1. Monopoly over your data to a single organization.
2. Advertisements will show up on your browser. You will have to pay for using the system without advertisements.
3. Out of the "box" (although there is no packaged software), you will have a fixed amount of storage. But if you find it really useful to store all your data on the cloud and access it from anywhere, you may have to pay some price for the storage. There may be different schemes on the quality of backup policies you use.
4. More demands on network bandwidth.

Neutral
1. You may prefer to use your favorite IDE for programming online and run the code on Google's servers for testing it.
2. If it becomes mainstream, you may end up writing code for the browser itself.
3. The HTML standard may be influenced depending on the popularity of the system. Application Developers may want easier programming models to send commands to the servers. Difficult to predict what the demand can be like.

But wait. The above is just my prediction. Let us wait for the actual changes in ecosystem that may ensue.

Do share your views on the topic.