I remember when people said nobody needed another search engine. I also remember people saying they definitely needed a better webmail option. Listen to your market, but not too much.
Chrome is only worthwhile because of the speed not only of its JavaScript VM but also the speed (and to a lesser extent, design) of its UI.
It's a night and day difference from Firefox on my machine. It's been _years_ since Chrome made it on the scene and the response from Mozilla is still abysmal; Firefox is still at least twice as slow than Chrom(e|ium) for me. Firefox's UI is still clunky and huge and slow; dragging tabs takes forever and breaking them out forces a page refresh (bad when watching videos etc).
If Mozilla doesn't want to get crushed by Chrome they need to put together a serious response and fix their issues. The only thing keeping users on Fx would be extensions, but equivalents are quickly showing up for Chrome. Mozilla is going to completely lose its relevance if they don't get real about fixing things.
I started up Ubuntu 10.04 and was disappointed to see Firefox as the default browser. I think Linux distros should use Chromium as the default.
There's still the issue of Chrome's addons not being as powerful as Firefox's. I dearly want to switch to Chrome (or ium), but I've grown quite attached to the Tree Style Tabs addon, and I've found the attempts to replicate that functionality in Chrome somewhat lacking. The speed difference is absolutely huge though. It's like opening MS Word vs Notepad: Chrome is just there, but Firefox takes at least a few seconds to open up, even without (m)any addons