First it was 'oooh ahhh applications online', now we are going full circle to where the browser can do most things the desktop can do and we are going offline again.
Regarding an offline version of Google Docs:
“You’re going to see offline start to roll out later this summer. We used to have offline with Google Gears, but it became pretty clear that plugins weren’t the right approach. We’ve been reimplementing offline using HTML5 standards like AppCache, File API, and IndexDB.
We’re some of the first webapps that are really putting those standards to the test, so it’s taken a while to iron out the kinks.”