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It's Taken Three Years Too Long, But Google Finally Has A Plan For Android Everywhere

When Asus demonstrated its first Transformer it was obvious that here was a new class of machine which merged the best of a laptop with the best of a tablet. Even though Android didn't really have the apps to make it a truly seamless experience.
Now that Microsoft has led the way in showing how a hybrid is really the sort of machine we all really want and need, it appears that Google has finally got the message and will be killing off its Chromebook line and merging the functionality into Android to create a true hybrid.
Android tablet software availability has improved and as a result a modern Transformer-style machine could certainly be a worthwhile product for Google and its partners to pursue. It would need to support the full desktop version of Chrome in order to deliver the Chromebook functionality that brings it within touching distance of a true Windows machine for a subset of users.
This change could also bring a Continuum-like experience to Android smartphones - many devices already support MHL and almost all support USB OTG. I'm reminded here that Samsung was actually first to market with a true desktop dock product, for the Galaxy Note 2.
Microsoft's products would retain two key advantages though. On the Surface range, the ability to run full Win32 apps in desktop or tablet configuration. On Windows 10 Mobiles the ability to run Universal apps in a manner appropriate to whichever display is being used.
All this will leave Apple as the outsider, and despite recent denials of a hybrid device suitable of fitting both desktop and table use cases, continued success for Microsoft's Surfaces and a good response to new Android-powered hybrid devices will surely force Apple's hand.
The question is, will Apple scale up iOS to have near desktop capabilities or scale down OS X to fit smaller, less powerful devices?