I think the cloud has a way to go before local capability and connectivity is suitable for business use at a utility level. But it's moving quickly. (must be the wind)
Amiga.org and other Web 2.0 technology, sa; social networking is effectively cloud. So in one sence we are bagging something on the very medium we think is over rated, smirk.
There is no need to have thin clients to connect to the cloud. That would be the worst case for Microsoft and Apple how would they sell there OS's and Systems+OSs?
MS realised in 2008 that moving to the browser would seriously stuff their business and made changes to ensure the desktop would go on. Why would you need a virtual desktop if all your systems run in the browser. Damn those Java boys. "ASP.Net all engines full reverse.!"
To me the issue is around sustainability. Unfortunately no matter how cool technology is the world can't sustain a new USB drive every year and a PC upgrade every 5 for 5 billion people.
In the words of Seinfield; "Something's gotta give!"
The cloud has issues a plenty. But it gives sustainability a chance and sounds like the right thing to do..
Gertsy