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Great post Reg.

Another important factor in the Google vs Apple debate is the idea of server-side gaming. This allows photo-realistic gaming (think Avatar quality) to be rendered on heavy duty server resources, with the display placed on lightweight devices such as tablets & smart-phones. Server-side gaming requires a serious infrastructure, which can place the compute nearer (latency-wise) to the user at any one time, and this is in the wheel-house of Google, not so much Apple.

This is an adjunct to other forms of cloud gaming, but the nice thing is that low-power devices can play games which require massive compute and datasets.

When you factor in what Google is doing with GoogleTV, you can imagine a new 3D HDTV playing some really wild games, but also play them on your android slate! In the same way that a web browser pushes compute to the cloud, this concept makes the browser or the UI in general a canvas to display remotely computed games. In the end, the infrastructure builder wins -- the "end-points" are being commoditized.

I blogged about this some time ago, and would be happy to provide more analysis.

-Kevin