InfoWorld's Neil McAllister had an interesting post about a Microsoft research project titled "Gazelle: The browser that thinks like an OS." I read that post the same day that Appcelerator's press release about Titanium came across my e-mail.
It's interesting that as Microsoft is taking steps away from the (need for a) desktop, Appcelerator's Titanium is taking steps towards the desktop. This is a great move for Appcelerator as the number of desktop applications being deployed continues to amaze me in this age of Web applications. It's also wise for Microsoft to look beyond the desktop as a deployment environment. At the end of the day, I'm sure we'll still have the need for desktop and Web applications in 10 years even as SaaS pundits call for the death of the desktop. Choice is good for customers and the vendors that offer it.
From what I've read, Titanium looks very interesting. I'll get a briefing scheduled with these guys and report back if I missed anything.