Heh- true 'nuff! If we could do what we do using only web software, we would. It seems that apps like Quicksilver (Mac), Enso (Windows), Firefox, etc., are still pretty darn innovative. But the agility that the web affords is pretty darn addictive.
I think within your post right here lies a lot of the problem. There needs to be a really compelling to write something as desktop software instead of as a web app, so most people don't even bother to learn how to write desktop software in the first place.
Absolutely, the paradigm of 'client-software' is becoming ambiguous for most of the web people. 'Porting' an existing web app to a 'client software' is a very trivial work, thanks to stuff like XULRunner.