Via Phil Windley, someone (not sure who) continues to get it wrong...
Sure, AIR is not "a browser" out of the box. That's a good thing. It is an application development platform. Browsers (in the traditional sense) are not good at that.
Clearly the browser implementers are finding ways to become more like AIR, out of necessity. Browsers are not the end of evolution, neither is AIR. They are each points along the way to whatever comes next.