Google to sell thin client computers?

There was an interesting little tidbit buried deep in a recent NY Times story on Microsoft and software as a service:

"For the last few months, Google has talked with Wyse Technology, a maker of so-called thin-client computers (without hard drives). The discussions are focused on a $200 Google-branded machine that would likely be marketed in cooperation with telecommunications companies in markets like China and India, where home PC's are less common, said John Kish, chief executive of Wyse."

Google sells servers, and there has been speculation about client hardware since at least early this year. But this is the first firm report I've seen.

I'm not a big fan of thin clients; local storage is very cheap, and much higher bandwidth than even the fastest network. But I presume the most significant thinness in a Google client would be the absence of a Microsoft operating system.

Hey, Google, while you're at it you need to do a mobile client too.