It'll be interesting to see how plug-ins play out. Google probably does not need to provide the most feature filled browser as a core offering. Providing a simple and highly robust browser is probably more ideal. Do less but be indispensable at what you do.
I see this as a move that forces standards. Google is putting its big shoulder behind increased performance and consistency on the internet. If other people want to wrap the core offering in fancier clothes, I think Google still wins.
... and then people start requesting 'just a couple' of new features.