Then you add capability to hide the browser chrome and build close to native user experience and we will have truly looped the loop. Think about that: the browser as an intermediation ensuring resources are properly shared and each application is shielded from the others. Everything that’s old is new again. /s
On a serious note I don’t see the point in turning browsers into an OS on top of the OS. I know it’s some kind of Google wet dream so they can suck up even more data than they already do but still. If you want to ship applications, just do that. The sandboxing should be done at the OS level where it belongs.
I was in your camp, but we truly lost. Almost everyone I know literally ONLY uses a browser for everything. On mobile some things force you app use, but if that weren't the case, people would use it from a browser. Games in browsers, movies, email, anything. So it makes sense to only open a browser in an OS; it is basically what users do anyway.
On a serious note I don’t see the point in turning browsers into an OS on top of the OS. I know it’s some kind of Google wet dream so they can suck up even more data than they already do but still. If you want to ship applications, just do that. The sandboxing should be done at the OS level where it belongs.