Google Chrome open source OS. Wholly cow now what?

Today I had a boiled conversation with a colleague about how the browser war is actually about the same thing the OS wars are about and that the they are becoming the next OS. Spooky enough Google just announced the next OS which is guess what ?....a browser based OS and everything that is on it isn't because its on the Internet ...
My guess the only good thing about it is that it is Open Source ....
Ok so now let's stop for a minute ....holly cow what is going to happened now?
I mean this isn't your average Joe making a garage OS this is Google and we all remember what happened with Linux came to the market and how everyone was making laughs at the corporate world and now they have to deal with it now. You know this big torn up their ....
Ok so what now ...I mean even assuming everyone from the big players new Google was coming with an OS and it was out in the public two facts are interesting. One it wasn't due until a year later (2010) and two it wasn't suppose to be Open Source ....hm
Now what .....?! and how is this going to impact everything and all the major players?

http://www.youtube.com/watch?v=0QRO3gKj3qw&feature=player_embedded