With all of Google Docs new features, can Adobe be done away altogether? In Chrome? In Firefox?
Well, I wrote about open source Adobe alternatives on my tech blog last year. http://fruitgeek.wordpress.com/2010/05/25/best-mac-adobe-alternatives-free/
Yes, Adobe's handling of images is something that could be very hard to duplicate online with the current technology, even if simply because of the shear size of the files we have to manipulate sometimes. As for Office, Google docs still has some catching up to do, but the fact that you need to be online causes a serious issue. Most people still work on their documents while on planes or other places where they might not have internet access, so it's still necessary for many.
Adobe serves a completely different purpose than Google Docs. The purpose of PDF files (the final output of the Adobe suite) is to provide a universal, portable document format (hence the file extension - PDF) that can be read by anyone on any computer, regardless of operating system or word processing program. Adobe makes this possible by providing Adobe Reader for free. The full Adobe suite is only necessary if you create documents that are fully bookmarked, indexed, and linked. You don't need it if all you do is read them. Of course, you also cannot edit a PDF document without the suite.
Yes, it is necessary indeed. Google Docs is a really good tool but it's still far far away from the possibilities of the Creative Suite. How could you substitute powerful tools as InDesign, Illustrator or Photoshop just using Google Docs?
If the question was whether we need Microsoft Office having something so useful as Open Office, that'd be a more hard one.
I think you meant to compare Google Docs and MS Office? Adobe is a specialized suite and it will be a while before we have their equivalent in a browser.