Not eaxctly breaking news but this should be very interesting indeed. I'm kind of hoping it'll be light enough to boot from a flash drive, if so it could be perfect for my little Asus eee which is a pretty fab little web book. It's currently running an nLight'd XP installation but sometimes even 45 seconds is too long to wait for it to boot.
Would love the option of a very quick boot into the Google OS as I find Chrome a good browser for quick searches (although Firefox is still my mainstay browser) and I find Gmail and Google Calendar pretty brilliant.