I was reading the June issue of Macworld on my flight back to Austin last night and it had an article about the rise of web-based programs. One program it specifically mentioned was Adobe's Photoshop Express, which I've started using. You can see some of my photos here.
I was having a discussion with someone using Rally's web-based agile project management software over the weekend. His conclusion was that while it was ok, there were some desktop features that this program didn't do as well because it was web-based. To me, the biggest limitation to web-based stuff is that you have to be connected to use most of it (though that is starting to change). For someone that does a lot of work on airplanes, this is a problem, at least until more planes start offering in-flight wi-fi. So for most things, I'll stick with my desktop application.
On a side note, I was featured in today's post on Dan Schawbel's blog, Personal Branding.