I'm actually really surprised that they haven't swallowed up DropBox. It seems like they see how close they are coming to just providing the "GDrive" but they want to provide access to it only through their existing products. Really it is a smart business move.
Add drivers to make this look like an external drive on my OS of choice and I think you have a winner. But my guess is that Google will try to swallow up some start-up (cough cough, DropBox) that can deal with the sync'ing issues that allow off-line operation.
Anyone else care to venture a guess as to where Google is heading? (oh yeah ... world domination of course).