Nilay Patel:

The entire system is web-based and runs in the Chrome browser – right down to USB drive contents, which show up in a browser tab, and the notepad, which actually creates a Google Docs document. Web apps are launched from a persistent apps panel, which includes Gmail, Facebook, Twitter, and Hulu, among others, and background apps like Google Talk can be minimized to “panels” that dock to the bottom of the screen.

Nifty, but nothing surprising here. The hardware bit is interesting, though:

As far as launch, Google’s not talking about specifics until next year, but Chrome OS won’t run on just anything – there’ll be specific reference hardware. That means you can’t just download Chrome OS and go, you’ll have to buy a Chrome OS device approved by Google.

This of course is all about drivers. By only sanctioning the OS to run on certain hardware, Google can ensure users get a great experience, and don’t have to fiddle with hardware drivers. Just like Apple does with the Mac and OS X.