Though it is much faster, saves monitor real estate, and is tight for a new browser, Chrome is not a competitor in the FF league yet. However, with maturity, and good programming /design decisions it could easily be so. I think it likely. It needs tweaks, support for extensions, and the ability to use some sort of public plug-ins.
Now. Once it gets in the game and can truly replace FF, Google could simply cease pouring $$ into FF. Over 70% of FF funding comes from Google advertising. I would suppose that if Google decided to be the dominant (non-IE) browser, an easy way would be to turn off the money pipe.
Thoughts?