Google Gears
Is Google Gears (an open source browser extension that enables web applications to provide offline functionality using JavaScript API) a competitor to Adobe AIR? According to the google website http://gears.google.com/
It will let you:
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Store and serve application resources locally
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Store data locally in a fully-searchable relational database
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Run asynchronous Javascript to improve application responsiveness
Hmm let's hope the competition helps improve AIR even more!