Can Web Apps Ever Truly Replace Desktop Apps?

tooger writes "Matt Hartley from MadPenguin.org opines that web apps can never replace desktop applications, for a variety of reasons. He writes, 'Some of you may point out that the data stored on your hard drive is not of any real consequence, but I would disagree. It is more than probable that a skilled, disgruntled employee of the company you trust with your data could ... sell off your personal information.' Given the real danger of privacy concerns, identity theft, and uptime, will web-based applications ever truly replace locally hosted software?"