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This is not meant as a competitor to MS and Linux. Just take a look at the online nice demo.

an operating system is not just a desktop and a file manager

seems like a misunderstanding of some fundamental concepts

Yeah that's what I thought. It seems to be more of a web collaboration / sharing platform than anything even closely resembling a "real" Operating system.
Whatever. I think, anyway, it's a nice free and opensource project.

I saw this and went "Hmm somone figured out how to turn PHP script into pure ASM or C so I can compile it with out including an interpreter..."Then I was disapointed..

The bulk of the heavy lifting done there is in javascript, not PHP. However, it is an impressive amount of work, if not a little bit unresponsive.

I took a look at the HTTP POST's being sent back and forth, and they are using SOAP, and are sending extremely large amounts of data per request, hence the sluggishness, if they really want to scale this out they will need to ditch the PHP backend for something that can handle that form of processing faster.