I think there needs to be a split between the web browser as a document renderer and link follower, and the web browser as a portable target for GUI applications. But frankly my biggest gripe is that you need HTML, JS, and CSS. Three distinct languages that are extremely dissimilar in syntax and semantics that you need all three of (or some bastard cross compiler for your JSX to convert from one format to them). Just make a decent scripting language and interface for the browser and you don't need that nonsense.

I understand this has been tried before (flash, silverlight, etc). They weren't bad ideas, they were killed because of companies that were threatened by the browser as a standard target for applications.