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While Google may have more power and space to serve, this is not new, http://www.workspot.com/ has been doing that for some time using VNC and Linux servers. I had an account there some time ago, back when it was still free.
Of course it would be funny to see Google tackle this at a much wider scale, but I'd say it would lack integration with their other services...
A real GoogleOS would need query support, to handle searching google itself (and your gmail account) mounted as different volumes as you would on local files, and as I already do in BeOS, er, Zeta:
http://clapcrest.free.fr/revol/beos/shot_googlefs_006.png
*that* is a google OS