Yeah, I'm looking forward to AROS 1.0
To me a browser is still an application and not part of the OS.
That said, an OS is useless without applications.
for any OS to be useable today you need certain core applications:
-browser
-email client (though the browser can substitute for that)
-IM client
-word processor
-picture editor (LunaPaint)
and additionally for business apps
-ODBC api or a SqlServer direct client api
Ideally, I'd like to see Mono (open-source .NET Framework implementation) ported as well. There is an open-source DirectX implementation going on as well.