Well, they would wouldn't they? Google's business plan revolves around web applications.
But lets examine the prospect. For web based apps to work on a mobile device you need a good signal all the time, and for s lot of apps you need a 3G signal because if the amount if data involved. 3G coverage is spotty at best in many cities and with increased uptake, speeds drop. A recent survey in London found that day time speeds were rarely above 1Mbps. Service providers are about to start rolling out a 4G service, but they haven't even got a country wide 3G service yet.
To take an example: to do lists. An app sorely missing from the iPhone. There are plenty of web based to do sites, Toddledo fir example. Do you really want to be dependant on a good web connection for something so important? How would you feel if you couldn't get at your to dos because you don't have a data signal where you are?
So I don't think web based apps are going to take off any time soon.

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