Google should dump Chrome OS, use Android.
Android desktop apps
Android can succeed on laptops and desktops if Google creates a separate section in Google Play for desktop apps that are designed for 12"+ screens, keyboards and mice/trackpads. Touchscreen support would be optional for these apps.
HP is using Android on laptops and desktops instead of Chrome OS for several reasons:
Beyond the user interface, the Android laptop will run applications such as Skype that are not yet supported on Chromebooks. Android also boasts better printer support than the Chrome OS.
HP has had to make choices in the past on whether to use the Chrome OS or Android in PCs. HP chose Android over Chrome for its Slate 21 Pro all-in-one, partly because Android was heavily customizable as an open-source OS, while features in Chrome OS were controlled by Google. HP also said that Android was cheaper to implement than Chrome OS, which had to comply with specific hardware requirements.
Why Chrome OS failed
Chrome OS was created believing that most people would only need a web browser, not traditional native apps. With Google adding Android app support to Chrome OS, it's clear they realize they were wrong.
Mobile users prefer using native apps over the web browser:
Android laptop and desktop users would likely have a similar preference.
In three years, Chrome OS has not managed to gain a significant share of web traffic:
Chrome OS doesn't have any significant advantages over Android.