Wow ... another "installed software is a dinosaur" article. Given that this nonsense has been bandied about since the late 80s (you know, last MILLENNIUM) you'd think by now people would stop saying it, at least until there's an HONESTLY suitably alternative.
SaaS is only barely there right now. Google Docs is still quite a few generations away from being truly competitive against desktop word processors. The same can be said of most applications of that nature.
This article goes out of its way to use semantics to say some things that are kind of stupid. Google isn't going to "abandon android". AT MOST they'll start wrapping android into a brand called "play". And honest, I'll be surprised if they even do that.