but if both were the same cost (be it both free, or both $100 or whatever), then which would you use? i know id prefer excel on my desktop than resort to the google alternative, if cost was not a factor... and lets not confuse use of the cloud for mere storage with the app itself. yes, i now use a shared folder on dropbox for sharing family pics etc, but i want photoshop on my desktop to edit them / do anything with them.

Yup. I've always thought this way too... It annoys me that after so many years or supposed progress in the development of applications, the 'dominant' platform now is reckoned to be the browser - a container which essentially 'forgets' everything at each click of the mouse... (<- yeah yeah, stretching it a bit here).. it's being pushed because it's easily monetized.. not because it delivers a better experience for the user (or for the developers writing for it)...