Google Chrome - Google's World Domination Continues to Expand - With Open Arms

So there has been a lot of buzz on the “internets” about Google’s upcoming OS- Google Chrome and Windows 7 OS. I am a Vista user and had my share of issues with the operating system, but still prefer the OS over XP. I am looking forward to Windows 7 and have already pre-ordered it. However, I am an avid Google fan and feel that Google offers tons of great apps and services. I don’t know if Google can compete with the Microsoft Giant. With Microsoft’s Bing Search engine taking shots at Google, it only seems fitting that Google return the favor. All of Google’s basic applications and services have been free. If Google Chrome (now only a browser) is a free OS it may get a lot of support, perhaps more than Linux. However, I only see the support in the network market and little in the desktop world of business and education. The unlikely support of Microsoft’s Powerhouse Office Suite will ultimately rule Google out.
But what if Google had an ace up its sleeve, I fully expect Google Documents, Calendar, Gmail, Maps, Etc to all have offline counterparts in the new OS with syncing options. However, what if Google did a complete overhaul of its line of products to try to compete with Microsoft head on? What if they did it for free too. Could that unleash the world from the grips of Microsoft domination? How would they make money? Google Ads. When the OS is connected to the internet, Google could have not distracting ads that are on the side of the screen. This would allow for revenue. Additionally, users could pay a small yearly fee to run the OS ad free. This model would be great and probably would be cheaper than other solutions.
Google would need to support some of the big software companies out there. Adobe being one of the big companies they would need support from. Google would also have to offer something that Apple, Microsoft and Linux cannot. Google needs to give users a reason to switch out of their comfort-zone. Lastly, Google needs to be partnered with Dell, HP and the other big companies to provide their OS preloaded. Ultimately, the success will come down to support of software and easy/stability of the product. Price and Unique features will also tip the scales in their favor. How do you think the Google OS will compete against Windows 7?