Is Adobe Air going to follow a pdf like trend or die like the vhs/dvd combo unit

Just recently I watched a talk from Francisco Tolmasky at FOWA in which he briefly compared some technologies such as Air to a dvd/vhs combo. With all the hype around cloud computing it was a fair comment and got me thinking a little further.

I currently am just about to start a big project for our school catering company la Fringale and one of the solutions we had in mind was in fact adobe air. We thought that it was the happy medium between desktop and cloud computing by which we could fully implement our solution. Francisco got me rethinking the whole process espescially after I demo'ed his 280 North application.

However I am still debating both. Can adobe air progress and harness more of the cpu's power whilst staying in contact with the cloud or will it just fall off the grid like tons of other similar ventures have done. Should we solely focus on a web app? I personally have no idea but I have to make a decision soon.

I envisage that our final solution will probably lie in a hybrid state of this realm. Keeping heavy task localised on the desktop via a univeral application and move everything else to the cloud...

I await your comments...