Google Chrome Frame — good or bad for the web?

Here is Google's description of what Chrome Frame is:

Google Chrome Frame is an early-stage open source plug-in that seamlessly brings Google Chrome's open web technologies and speedy JavaScript engine to Internet Explorer. With Google Chrome Frame, you can:

• Start using open web technologies - like the HTML5 canvas tag - right away, even technologies that aren't yet supported in Internet Explorer 6, 7, or 8.
• Take advantage of JavaScript performance improvements to make your apps faster and more responsive.

—http://code.google.com/chrome/chromeframe/

I'm intrigued by Google Frame; on one hand it's a pretty neat way of providing a more advanced experience to users of Internet Explorer, but I'm also concerned that it's providing a prop to browsers that really should be moving towards deprecation. If a browser isn't capable of displaying a site wouldn't it make more sense to point people in the direction of browsers that are more advanced?

Is this also saying that Google Wave will need Chrome Frame because it will only be meaningful to users with the most up to date technology. If you aren't up to date is there no base-line experience? If that's the case, a future that ignores progressive enhancement has a nasty aroma to it.