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I think he's right that browsers need to innovate, not by innovating new ways for web apps to do things, but by innovating new ways to interact with existing web apps. There's a whole load of potential integration between browsers and web content, and while there are various browser based twitter/whatever clients and whatnot, most of them feel tacked on rather than integrated. The internet tends to feel like a giant cobweb, rather than a woven spiderweb.

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