I'm not clear on this -- how can it be open source without allowing programmers access to the underlying OS?
Also, I would be surprised if the OS doesn't allow for running any local apps but you may be right.
Also, I guess some Linux folks (like myself) are upset because we wanted to see a full-on competitor to msft with Google branding, i.e. Goobuntu. There have been rumors for years about a Google-branded Linux distribution coming out and its a bit disappointing that its not the whole hog.