I want to stress that only certain special literary projects are appropriate for this kind of treatment, and I think I have one, so I'm fooling with it. But I'm giving much more time, at the moment, to writing a traditional novel meant to be savored sequentially, on paper, and I'm enjoying that immensely. I do not think that hypertextual possibilities are valid for all writing, and I definitely do not think that hypertext will ever eliminate the eternal human yearning for story, for sequential non-interactive narrative told by an inspired teller. In fact, you seem to thrive on the interplay between the two. Print and digital media complement one another in many ways.
Computers offer excellent tools for text editing.
For writing itself, the tools aren't advanced enough yet. But personal computers are still the wrong devices for readers, for text consumers. No one wants to read long stretches of any text on a computer screen. I think it can happen by about the turn of the century. As to software writing tools, I'd like to see a few things.