The problem with the Cloud is that it's constantly referred to as one cloud, whilst in reality, we're going to end up with an entire weather system.
Home computing is changing, and with the next generation consoles, more and more tasks handled by PC's will be moved to those platforms. Cloud computing will be used heavily here, especially when taking iPhones, and Android phones into account.
There are parts of this that I don't like, such as too much personal information being stored online, but in the end, people will be willing to risk personal integrity to gain access to 1337 games and easy-mode computing.
