It will launch in a window in chrome OS in the new interface. It is a packaged app as in all of it's resources are bundled in the crx and it does not need anything from the web.

This is the older version of the documentation. The app uses this version of apis. http://code.google.com/chrome/extensions/apps.html

The difference b/w this and old version is that it has access to more apis. The underlying idea of a packaged app (that all data is bundled in .crx file) is same for both of them. This is discussed here. http://code.google.com/chrome/extensions/trunk/apps/app_arch...

Thanks that clarifies it.