I decided to install some Chrome Applications bug installation kept failing in worst possible manner - nothing happened. It would just go from "Add to Chrome" to "Installing..." and then back to "Add to Chrome". I was silently ignored. And that happened for all applications that I attempted to install. Applications that were previously installed kept working but there was no new applications for me.
After some time I found culprit. For some reason known only to Google, application install would fail if it could not reach Google Analytics. On my system access to Analytics was broken on purpose. As soon as I allowed DNS to resolve it's IP address, applications managed to get installed once again.