Interesting talk, but I disagree with most of you here. First of all I don't thing this will ever get that huge acceptance, because plenty stuff people today have on their machines is actually illegal mp3/movies/programs you name it, so they don't want to get caught. Secondly I don't think people would want to depend on a remote station completely, like someone has already said what if the server is down or they lose your data or there are data leaks ...
That said I think plenty people will use it, mostly for the convenience but the other option will be there, they'll probably use both and it's not like governments will force you to NOT have a powerfull computer at home:)