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Remy, great article! I will definitely be making more use of this part of the HTML5 spec.
I’ve been following Gears since its inception, but never used it because due to its lack of full support across platforms and browsers.
When I found out a certain iPhone OS update brought offline storage to Mobile Safari (through HTML5) and that Google was making use of it in their mobile web apps (such as Gmail), it seemed like the nail in the coffin.
When this really starts to grow (with wider browser support and consumer awareness), you can forget AIR.