Two things about html5... how do we get access to lower-level device sensor's and functions? Will need an extension to the DOM or something to support that.
Yes. The article points this out, but also indicates if HTML 5 becomes more prevalent, it will just speed up the process of getting that functionality added. There are a lot of things that for whatever reason work better as a native application, but there are plenty of things that don't need to be native applications at all.
Maybe even more importantly... how do you make money off html5 applications?
Paid subscriptions or advertising. Considering that a lot of Android apps already make their money through advertising, this doesn't change much for a lot of developers.