I friend asked me this today.
Picasa Web has a cool (and frightening :-) feature where it will recognize all the faces in your photo album.
But the PC (desktop) version doesn't have this.
Several reasons I can think of:
Any other thoughts?
I'm certain it'll make it out in coming releases but Google is a funny company when it comes to its own competing/complementing services. One thing is for sure, only somebody on the Picasa team could give an accurate answer.
But we could hypothesise several things...
I don't think processing power is an issue. If they're running it in bulk on their own servers for free, a modern desktop could probably run it without issue.