I was speaking of the Chrome OS that is indeed an operating system based on Linux.
http://en.wikipedia.org/wiki/Chrome_OS
It is indeed mostly a life support system for the Chrome browser, but do most really need anything more in this day of SaaS software? If they do, Linux is a very tailorable operating system. Anything that gets people to stop using Internet Exploder is a most excellent thing.
Microsoft's player in this market is the exceedingly eeeevillllle .net (CoreCLR) that simultaneously sucks and blows in all of the worst ways. Reminds me of their previous feeble attempt into that space: MSJVM.