I have my doubts about many things and the arguments here and in the comments section loom large.
Yes, I can see that business sees no need for an 'arms race' escalation of desktops once the basics are there. A few people, gamers, developers, might want personal workstations that they can load up with memory and high performance graphics engines, but for the rest of us, its ho-hum. That Intel and AMD are producing chips with more cores, more cache, integrated graphics and more, well Moore's Law applies to transistor density, doesn't it, and they have to do something to soak up all those extra transistors on the chips.
As for smaller packaging, what do these people think smart phones and tablets and watches are?
Gimme a brake!
My phone has more computing power than was used by the Manhattan project to develop the first nuclear bomb.
These are interesting, but the real application of chip density is going to have to be doing other things serving the desktop. its going to be
And for #1 & #3 Windows will become if not an impediment, then irrelevant.
Its possible a very stripped down Linux can serve for #1 & #3, but somewhere along the line I suspect people might wake up and adopt a proper RTOS such as QNX much in the same way that Linux has come to dominate #2. It is, however, possible, the Microsoft will, not that Gates and Balmer are out of the scene, adopt something Linux like or
work with Linux so as to stay relevant in new markets. The Windows tablet isn't the success they hoped for and the buyout of Nokia seemed more to take Nokia out of the market than become an asset for Microsoft to enter the phone market and compete with Apple and Samsung. many big forms that do have lots of Windows workstations are turning to running
SAMBA on Big Iron because (a) its cheaper than a huge array of Windows Servers that present reliability and administrative overhead, and (b) its scalable. Linux isn't the 'rough beast' that Balmer made out and Microsoft's 'center cannot hold' the way it has in the past.