app store vs HTML 5

So let’s say you’re shipping a non-iPhone mobile internet computer. It’s Android, Palm Pre, Kindle, something along those lines. And you need to compete with Apple’s app store.

Do you:

1) Make your own little app store, in full knowledge that merchandise will be rare and shoddy?

2) Implement HTML 5 with local storage, great canvas support and all the other doodads that make it possible to do full-function web apps?