Google Developing AJAX Web Editor?

Mike Arrington points to Ajaxian (nice redesign) points to Valleywag points to an email from a source that says Google is working on a Web page editor called Trogdor.
I'm willing to bet, and so is everybody else, that Google is making Gmail a robust platform to offer near-enterprise levels of service. Or, they're developing Gmail to be the premier "office" app online. Dovetails nicely with today's Gmail announcement about hosted domains.
Classic pincer move. Corner the online office market with Gmail as your linchpin to motivate Gtalk and chat adoption, knock Microsoft from the top position, which lags in integrating these services.
At the same time, invade Microsoft's desktop space with Google Desktop.
I do wonder if the Microsoft antitrust lawsuit would occur today in such a competitive climate.