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There are settings where you can trust the local machine but cannot perform any installs. In many offices normal users do not have the technical or formal permissions to install software, even though they may trust the local machine to not be infected by malware or be compromised in some other way.

Another example may be if you are only allowed to access the internet through a proxy browser solution using e.g. Citrix MetaFrame, then even though you might be able to install applications locally, they will not be able to connect to the internet directly.

When I visit a family member's house, whom I trust, but don't want to be bothered installing a client on their computer.

Probably when you want to use the browser (from computers you do not control) or when the user is not that computer literate.

Between this and Google Play apps (seems unlikely but I still hope we will have the ability to side load APK) on ChromeOS, we can bring the likes of Citrix to the home -- a permanently Internet-connected headless computer at home and connecting to it from your Chromebook.