Google Apps to replace the LMS?

I've been musing this over for a while. While I'm a great fan of Learning Management Systems (LMSs, or VLEs) like Moodle and believe they have huge potential to create engaging, meaningful activities for students while providing excellent data to teachers, but I also believe that most teachers don't use them to anywhere near their potential. When I saw this article come through, I was reminded of a slide Martin D used in his video conference keynote into NZ's MoodleMoot in 2011:

He talks about the pedagogical progression possible with Moodle, but also acknowledged the fact that most teachers spend their time using it (and most other LMSs) to store and share files. It strikes me when reading this article that if all teachers want to do is share worksheets, they don't need an LMS.

http://mfeldstein.com/google-apps-for-education-when-will-it-replace-the-lms/