Google decision to come up with its own browser was definitely expected but I had not thought it would have been so soon. One of my friend who works in Google had informed me during a conversation in February 2008 that Google is going to come up with its own browser. But I had not taken it so seriously because release of Firefox 3.0 made me think that Google is going to contribute towards improvement of Firefox browser. Firefox is my favorite browser and I still vote for Firefox because it is not trying to dominate the Internet as Microsoft was doing and Google is trying the same.
Having Google Gear integrated with the browser and other cool stuff like history of recent site visited is definitely are added feature of Google Chrome but when you consider this with Mozilla Ubiquity or number of other great plugins, Google Chrome doesn't fit the picture.
Google also disheartened Linux user by not releasing Google Chrome for Linux. Whether Firefox will survive its market share or not is different issue but the greater issue is one more Browser War will start. Microsoft IE 8, Mozilla Firefox, Google Chrome who will win the battle is a question which is difficult to answer. Definitely IE 8 will be out of picture in few day. The other two big guns probably will have equal market share in near future.