I'm going to have to disagree with you. What was the number Steve gave last week? 100,000,000 downloads?
Apps are faster, they feel better, they can take advantage of the tilt properties and of multitouch. Did you not see the new ads? The new focus is all about gaming. You can't do games on the web with the same level of quality.
You can access multitouch, and some tilt stuff from javascript.
I guess it depends on connectivity in your area of the world.
As a user, I'd rather keep applications sandboxed in a nice browser with nothing downloaded.
I'm in New Jersey, and there's very little Wi-Fi. That's the other thing, actually: I speak from an iPod touch perspective, where you can't use a cellular network. That's something else to keep in mind.
People have been saying Mobile is the next war for the last 10 years.