I can see alot of applications being online,
But an online desktop I don't see working for a gamers environment, at least not yet

It's the same old story, like cars and refrigerators. You have a boom period where not everyone who wants one owns one, and growth continues at a huge rate --- then when everyone has the new item, sales start declining again --- eventually, and relatively soon, sales of new PCs will be to the youth market and for replacement purposes only. The geek market will still exist naturally, but it always has been, and always will be a niche market.

IMO the big revolution on the way will be the super huge flash drives that are coming down the line.

They still have some barriers to break, but they have the potential to make both magnetic hard drives and CD/DVD/HD-DVD/BLU-RAY technology obsolete. Also, potentially, the ability to create new market demand for the next gen PCs, but will that be enough to convince most people to ditch their current, perfectly good PC for the futre version when it becomes available ? I doubt it