Blake, I'm just an end-user and have never written a line of code in my life, but I admire the passion and motivation you have to take on difficult tasks in order to change the status quo. You, and a cast of thousands of open-source volunteers, did that with Firefox. You changed the world in a small but significant way. How many people can say that their actions changed the lives of millions people? Not many. For that, I just want to say thanks for the time and effort. (ending fanboy rant...)
That said, one question I came away with after reading the article about Parakey was: where is the so-called personalized web OS platform hosted? I understand the whole synchronization thing (I use flickr updater for example) but who hosts this Web OS and all the personalized data? Is Facebook now the intended host or is a new Parakey specific platform in the works?
Also, I love your key idea. It makes complete sense. We all have keys for everything in our lives: car, house, locker, so why not have simple "keys" for our on-line world? Instead of the ever-expanding password list, most of which are just insecure duplicates, we could either have a constantly expanding "key chain" of unique keys or , better yet, or a highly encrypted master key that verifies our identity and gives us instant access permission. I really hope this takes off. If you become the next billionaire in the process, so be it. Those who innovate deserve the spoils of their labor. If someone wishes to donate their time and effort to society, more power to 'em! In my mind 200 million and counting free copies of Firefox is a darn good example of philanthropy.