Few days back Google took an amazing step towards Rich Internet Application arena and announced Google Gears. A tiny (700k) browser plug-in download that lets a Web Application store data on your local machine.
As for now only Google Reader has been introduced with Offline Mode feature and I'm hoping to see Google's other Web Apps to kick start with this feature too.

Above is a Security Dialog box that pops up as soon you start or load a Web App that is using Google Gear and it lets you know that Google Gear is going to store data on your local machine. Google Gears uses SQLite to store information locally and uses SQL from JavaScript to CRUD (Create, Read, Update and Delete) data.
Here are few links to know more about Google Gears.