...When Google does it, I'm never quite sure if it's just something one group is just trying or if there is a grander plan.
I mean sure, Google is about web advertising, and it's straightforward to see how having a Google browser could enhance that. But on a grander scale this could:
* Be the Google "OS" -- well, really the Google application platform. For example, the Google apps are neat. But browser technology really limits just how useful these can really become. Control the app platform, however, and the sky's the limit. Of course, this would be a lot bigger than just the Google apps. They'd want to take a significant share of the client app platform market.
* If the Chrome platform can't reach critical mass, they will at least want to push other browsers to be a better application platform.
Microsoft/IE is in a tricky position. On one hand, browsers are assailing its market dominance from the left and right. On the other hand, MS simply cannot/will not provide the basis for its competitors' application platforms. They can play the stalling game, dribbling in real features (along with large cosmetic changes) at the slowest rate they think they can get away with--IE 7, IE 8--while at the same time pushing their own, proprietary web app platform as hard as possible (Silverlight, or whatever they replace that with). Time will tell if MS, Adobe, or Google, will win this war. Apple isn't a serious player here, but it will be interesting to see if they want to become one.