“Many, many applications can be delivered through the browser and what that does for our costs is stunning."

Well it's true that there is no cost at Google's side, but most importantly there is also no gain. Apple does have to pay for the servers, the bandwidth... But they also are making money out of it.

It may be true that the future is the browser, but I currently see no way for companies like Google and Apple to charge money for a web app.