An excellent post by Nick Bradbury, citing the current Web 2.0 hype and stating that the desktop still has a place. Steve Makofsky also weighs in here, as does Robert Scoble. But at this point, I'd like to disagree with Robert.
For me, streaming HDTV is irrelevant. I've yet to find a good definition of "Web 2.0", but I'm pretty sure that fast, reliable interactivity is a key component, which rules out streaming as an interesting feature.
I'd like to add another rule to Nick's:
Certain classes of applications cannot, by definition, be instantiated as a web service.
Well, for the foreseable future anyhow.
Of course, by this I mean a rather large subset of interactive entertainment. E.g. Games.
Yes, you can download a flash app, but at that point it's a local application. Yes, you can run something from Wild Tangent. Again, at that point it's effectively a local application streaming content.
For the smarts of the application to be remoted we need might higher bandwidth than is currently available today, and more to the point exponentially lower latencies.
I don't know about you, but I like my interactivity to happen at least at 30 hertz.