No matter how powerful the cloud is, it will always be limited by the network connection. I could have the cloud convert a blu-ray ISO to an h.264 MPEG4 in seconds, but I would spend hours uploading and downloading. Remember that over 10% of the U.S. do
not have access to broadband, even if they wanted it.
Good point! However, this will not always be the case - the physical Internet, too, will evolve and it is cloud computing that will drive this evolution