There was a lot of talk during 2005 and 2006 that Google would release a free operating system to combat Microsoft encroaching on their advertising business. In fact Google has already created its own Linux distribution called Goobuntu for internal use.
I think with Google Docs and their desktop search for windows they are moving in the direction of creating an OS capable of breaking into the main stream. They have plenty of money and they like to stir things up(like with the whole open cell phone bandwidth thing), so I think it is completely possible that they could launch an OS in the next year or two. It would be the perfect time since Microsoft would be very vulnerable right now since Vista sucks balls.
Do you think this is likely to happen?
^Guy pissing on Microsoft Sign