Speaking for myself, I am of the opinion that there is a very likely possibility that Google will eventually release a browser of their own. There are simply too many indications that they might consider such a move. Besides, if there search bar was a hit, then just imagine the success of an all out browser!
When I began writing this entry, I was listening to The Chris Pirillo Show. More specifically, I am listening to his inteview with Robert McLaw. Robert is a Microsoft VIP and is one of the writers for Longhorn blogs. It is a good interview and I would suggest you download part one and part two and give the whole interview a listen. They discuss many thing, mostly longhorn and x64 processors. I actually listened to the entire interview twice so that I could adequately take notes.
One of the things which caught my ear was that there are rumors that Google may be releasing a browser. Apparently these rumors have been circulating for quite some time. [Read the rest and get the links]