Good thing I found the fix in the Chromium issues list because I was already tempted to disable SELinux altogether.
We are trying to control what the chrome-sandbox is allowed to do, since it is setuid. The bug that you are seeing is caused by a file/directory being created in the homedir with the wrong label on it. In F15 we did not have policycoreutils-restorecond installed by default, which would have fixed the mislabeled directory. We can add this to a comps file to make sure it gets installed in the future. In F16 we have the ability to label these
files/directoriescorrectly on creation.
The quick fix is to execute the following command:
restorecon -R ~/.config
The command also solves the problem where the Xmarks Bookmarks Synchronizer and Delicious Bookmarks Extensions keeps on crashing on Chrome on Fedora 15.