What Microsoft is trying to do we are already into that. Being an open architecture everybody will embrace it except for Microsoft. I think over a period of time even Hewlett-Packard will adopt it too. The thin client movement failed to become successful. Thin client is existing in the present model, while the backend has become smart.
Cell phone is the classic example of thin client.
It has not failed and will command a major usage in the telecom computing model. It's still in the nascent stage, though few examples like Napster can be pointed out. But the issues are about implication and challenges. This should be delivered as a utility model, which is still to happen. I think the major issues of security, scalability and reliability are still not addressed.