How can I use the browser as a UI for a desktop app? The ways I have come up with so far are...
HTML Applications (HTA, for short) have been around for a while. You can read all about them here. They are basically HTML and Javascript with some extra options to create a window and with access to the local file system. They seem to be exactly what you want. It is Microsoft technology, so this will only work with IE on Windows systems. I've successfully used this as a front-end for a CD-ROM which was used to distribute software to first year students
Another option would be to use Adobe Air. I'm not all that familiar with the technology, but it seems to provide a framework to deploy web pages as desktop applications. I can't post a second link as a guest, but just google it and you'll find it soon enough.