well thats where computing is heading, and the future looks pretty grim to me.

the average user will just rent a box like a cable box that allows them access to the cloud.  telecom cos will sell tiered application 'packages' for office/productivity apps, games, media access, etc.  this will likely also allow them to charge for home networking since each 'computer' will require its own box and subscription.

the casual user will rejoice at no more worrying about viruses, malware, identity theft, stability issues, freezes, hardware failure, data loss, updates, installation, being scammed and gouged by comp stores/repairmen etc.  most of them dont care about the finer points of computing freedom and just want things to be easy to use, and work - fast and trouble free. 

the powerusers and internet 'purists' will suffer, and likely hang onto hardware as long as they can despite the fact that itll likely become more and more prohibitively expensive as it leaves the mainstream.

either way, small local comp stores days are numbered.