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What happens to the name of the desktop version of Picasa?

It will probably also get renamed to Google Photos but there is always a chance it will get discontinued.

My guess is they'll make that a webapp instead.

Webapp? They acquired Picnik and is in Flash. So IMO, they might shutdown Picnik and do something in HTML5 and javascript.

Most of the point of Picasa (the desktop software product, not Picasa Web Albums) is to collect and catalog your locally stored photos.

It wouldn't be a good fit for a webapp, even in an ideal everyone-has-HTML5 utopia world.