One of the big barriers for me to consider the web replacing the desktop is device support for the browser. Does anyone know of a way for web applications to talk to devices like digital cameras, video game paraphernalia, music instruments? Will atlas solve this problem?
Atlas/Cappuccino doesn't solve this problem, because it's constrained by what the browser provides us. However it's possible to integrate custom plugins to do these sort of things, if absolutely necessary.
Picurio (YC W09) has a browser plugin to allow uploading of photos directly from your digital camera. The GUI frontend is built with Cappuccino and integrates with this plugin. http://picurio.com/