depends on the demographic they are aiming for. Android OS coupled with Wave is a very interesting prospect imo, and if it can get it onto the majority of netbooks then yea I think it could be a serious competitor in an innovative way that is very likely to push other developers in different directions.
@Andrew Violet - it's tongue in cheek. I think the real threat over the next 3/5 years will be Cloud computing - it's simply cheaper and requires far less hardware investment as the majority of processing is done for you remotely. Whether it is Google, Apple, Microsoft or someone else who emerges victorious in this section is unknown but everyone will have to move in that direction I suspect.
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