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With the increased power of JavaScript frameworks like YUI, JQuery, and Prototype, and debugging tools like Firebug, doing an application entirely in browser-side JavaScript looks like a great way to make simple applications like puzzle games and specialized calculators.
Is there any downside to this other than exposing your source code? How should you handle data storage for this kind of program?
Edit: yes, Gears and cookies can be used for local storage, but you can't easily get access to files and other objects the user already has around. You also can't save data to a file for a user without having them invoke some browser feature like printing to PDF or saving page as a file.