Lifehacker has an interesting bit about Zoho Writer adding full offline access with Google Gears. I hadn't looked at Zoho before, but they have an excellent suite of web apps, and if you take the minute or so required to install Gears, then you can take your word processing docs offline, edit them (can't add images offline, but text + formatting works fine) and then sync up the changes once you go back online.
This is really cool, for laptop-using humans, or if you have crappy 'net connectivity and still need to work on stuff.
One really interesting part of Zoho's suite is their Creator app for online databases. Imagine being able to set up MS Access-style database apps, online, in just a few minutes. This is the sort of thing that should make Microsoft really, really worried. You don't need MS Office, Windows Server, IIS, VB or ActiveX controls... just this online app that takes 30 seconds to sign up, and 5 minutes to build a basic address book app. Or a recipe catalog. Or an inventory system.