It is business sector that Google and M$ are battling for. For home use, M$ still dominates, and there's not much difference from using Ubuntu on nettops. Intel certainly don't like what Google is doing, as they prefer end users to upgrade computers rather than downgrade OS to fit new cloud computing model.
We now know that linux failed at defeating M$ at nettop market due to consumer regarding netbooks as cheap, light weight notebooks replacement rather than mere internet device.
Google doesn't offer business user for free, and I doubt that business operators who have a lot of confidential data will move from M$. I found that only us the enthusiasts hate M$ pricing model and activation, and we are the small market. In the end, M$ will win and push Google to the side, just like they did to IBM, Lotus, Borland, Wordperfect/Corel, and many other of their competitors of the past. Remember that Google is the survivor of the dot.com bubble, but M$ is the top predator since the beginning of IBM PC.
For end users who don't feel like to pay M$, there are already OpenOffice for Win32, OSX and any linux distribution, and Google Chrome stuck on Tom's Hardware site to me twice yesterday.