The WebOS seems like an overhyped term like "cloud computing" or "web 2.0" to me. It seems more likely to me that the change will happen more gradually than most of us would like to think.
I'm actually with you on this one. Here's a quick analogy: It's like if you were raised from birth until 5 years old completely locked in a cell with no contact with the outside world, and someone told you to draw a pink elephant eating a chocolate ice-cream cone. You're so far removed from knowing what the basic concepts are that there's no way to even begin to start working on the details.
That being said - the term "cloud computing" may be overhyped, but the reality is that there are lots of businesses making lots of money on it right now, and it's only going to get bigger.