Web based apps vs Desktop apps

While google is trying to move apps from desktop to the web. Microsoft is attempting to bring some of them right back on to the desktop. At least one of them, that is online blogging with a desktop publishing - Live Writer

I think there is middle ground for this 'every thing on the web' vs 'everything on the desktop'. That is, to have light weight zero foot print clients on the desktop and have the information on the server. In that way you could use both the power of processing and rich user interface at the desktop and have your preferences and data at the server. You can have nice interfaces with out getting into the limitations of web based technologies like flash and AJAX standards. And you can have access your data every where.