This news is a little stale, but Google is 10 years old. I had actually read their newest futurist blog post after reading a recent Sitepoint’s blog about Microsoft and their futurist insight. The article mentions Microsoft’s strong commitment to client hardware, sparring that idea with Google’s “Cloud” centric hardware. I got to thinking that this article is way off. Google knows client hardware is important, look at the new Android phones. Most would agree iPhones are the superior hardware product, but look at one very important function: the Google app store. These are downloaded apps, not just internet apps. Also look at the rumored purchase of Steam. You’ll need powerful clients to run games.
I think this is merly propeganda from Microsoft, and a misconcpetion from the media. Google isn’t fighting for “dumb” clients, they are fighting for convenience.