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IS it possible that there is a localized virtual machine setup and the image itself is what is streamed over the network? IE you would have a locally installed version of linux on a virtual machine and an additional drive is essentially steamed over the network via SMB os something that contains the PS application?

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I can't see any practical reason why this would be the case. Photoshop is a pretty hefty application in terms of RAM/CPU, so it makes a lot more sense to run it remotely, since Chrome Books are built to be cheap, not powerful.

I agree, although perhaps ChromeBooks are "cheap and weak" because there are no applications that use the power (hence the failure of the Chrome Pixel). If ChromeBooks are to become ubiquitous, I think local VMs is a great solution for legacy applications.

Or perhaps NaCl?

I wonder if they are going to pay for all the windows or mac licenses to run on or they have a linux version working inhouse.

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