How strongly does Google believe in web applications?

I recently started advertising my product with Google Adwords. Advertising is Google's main source of income, so it is not taken lightly. It's a very complex operation which is immensely flexible and powerful. When I started using it, I noticed that they provide a desktop application for controlling your Adwords campaign, which works alongside the web interface.

I wonder why?  If you look at their FAQ, you'll see that it provides greater functionality. Functions such as copying/moving ads, changing multiple items at once and working off-line are a breeze in the desktop editor. 

What's up, Google?  On one hand, you do your best to announce the death of desktop applications. On the other hand, when it comes to your most important business, you admit that the web interface is just not rich enough.

About two weeks ago, I attended the first Israeli Google Developers Day. It was fun, well organized, highly technical and overall an interesting event. I recall that all the presenters were using Microsoft PowerPoint for their presentations (most guests had Macs, but that's a different story). Why not Google Docs?  

Microsoft just announced that it's going to compete with Google Docs and produce an online version of Microsoft Office. I'm saying: it's a great for PR. Practically speaking, they can continue to bask in the desktop office glory.